Research On Land Finance And Sustainable Development Of Local Finance

Since the 1994 tax reform,Financial resources began to flock to central government,the pressure of the local government has been increasing seriously.However,due to limitation of the amount of the land resources,the instability of the land-transferring fees and some financial and industrial risks which brought by land finance,selling national land-use right to solve fiscal problems become more and more unsustainable.A lot of researchers have pay their attention to this problem.this paper will take a close look at on above problems.Firstly,this article analyzed the connotation,the historical evolution and the development status of land finance.Land finance refers to local goverment acquire various taxes,transfer payments and financing income which brought by the land.Our current land revenue mainly rely on the land transfer,land direct tax revenues,land indirect tax revenue,administrative fees,and land revenue invisible parts.land transfer income accounted for the vast majority of land revenue.Secondly,this paper analyzed the causes of the land finance and the risks which brought by the land finance.The formation of the land finance mainly due to vertical fiscal imbalance,tax reform,promotion officer incentive system and the acceleration of urbanization leads after the 1994 tax reform.In an example of the four municipalities,the empirical analysis of this paper was from the perspective of relationship of Land Finance and its influencing factors.According to various problems caused by land finance,this paper did a detailed analysis of the risks which brought by the land finance.Finally,From improving relevant policies and regulations,a reasonable division of powers property rights,and promote the healthy development of the real estate industry and the implementation of new industrialization,urbanization and other aspects provides some policy recommendations to help local governments get rid of the land finance.At the same time,This paper also presents a number of recommendations which can help local finance achieve sustainable development,such as improving the quality of local fiscal revenues,optimize the structure of fiscal expenditure,improve the financial management system and deepen financial system reform.