An Empirical Study On Non-Tax Revenue And Related Policy References In Zhejiang Province

Government non-tax revenue is not an innovation, but a new word in China. The generation of non-tax revenue is based on two backgrounds: one is the continuously increased proportion of non-tax revenue to government revenue make it more and more important to macro-economy and micro-economy. The other is that concept of "extra- budgetary fund" was more and more out of focus and out of character to requirement of innovation and development from the start of revenue and budget innovation. In such case, the concept of non-tax revenue came out. This paper would compare non-tax revenue to tax revenue and "extra-budgetary fund" by method of comparative analysis to promote mutual understanding of government non-tax revenue. After that, economic analysis would be presented to analyze the rationality of that non-tax revenue exists. Afterwards, empirical research would be conducted on non-tax revenue of Zhejiang province during year of 2000 to 2008, discovering non-tax revenue scale is too large and the structure is not reasonable. Non-tax revenue of local government is too dependent on assignment fee of land. On the other hand, method of least square would be used to analyze the relation between non-tax revenue and GDP, reaching a conclusion that there is linear relationship. Non-tax revenue increases with GDP increasing. Finaly, advice would be posed to establish and improve the system of non-tax revenue management.