Study On The Financial Dependence Of Local Government On Land

After the reform of tax distribution system in 1994,the mismatch of financial and administrative powers between central and local governments has a direct impact on local governments.Tax-sharing system only regulates the financial revenue within the budget,but does not further regulate the use of extrabudgetary and non-budgetary funds.This makes local governments to expand budget revenue in order to develop the economy and stabilize financial funds.Since then,the issue of land finance has been the focus of attention from all walks of life,which is controversial.In recent years,with the development of urbanization,land finance has become the main revenue of local governments.Although the local government's economic pressure has been effectively alleviated,it inevitably leads to many problems.For example,the government's low purchase and high sale of land resources caused the reduction of land resources and accelerated the loss of land resources.At the same time,it has also caused a series of problems,such as land expropriation disputes,violence in demolition and relocation,excessive housing prices,increased pollution and reduced efficiency.Therefore,how to use land finance correctly and let it play an important role.How can local governments reduce their dependence on land finance? How can we change our behavior patterns? How to improve and standardize their own functions? It is worth discussing.Firstly,this paper introduces the concept of local government's land finance dependence.Based on the background that local government's revenue depends on land finance,this paper analyses the impact of Land Finance on local government's economy from the perspective of tax-sharing system and governance theory.The main point of view is that the mismatch between financial and administrative powers under the taxsharing system leads to the fact that local government revenue can not support the expenditure of public affairs.Local government urgently needs to solve the problem of fiscal revenue.The emergence of land transfer funds has effectively alleviated the shortage of local government's land finance,but with the progress of urbanization,land finance has become more and more intense,and local governments have become more dependent on land finance.Land finance not only alleviates the financial pressure of the government,but also brings many problems,such as the high proportion of government fund income in local fiscal revenue,the large fluctuation of local fiscal revenue affected by land prices and house prices,the continuous growth of local fiscal revenue needs to expand the urban boundary to obtain new land resources,and so on.Through combing the above information and combining with the performance of Land Finance Dependence of H provincial government,this paper analyzes the causes of the formation of land finance from three levels.Firstly,the reform of tax distribution system leads to the mismatch of financial rights and powers,secondly,the unreasonable incentive mechanism of officials,and finally,the imperfect land transfer mechanism.At the end of the article,the author puts forward the countermeasures to solve the financial dependence of local governments on land,perfects the reform of tax distribution system,establishes and perfects the supervision mechanism,perfects the assessment mechanism,strengthens the top-level design and moral restraint,establishes and perfects the supervision mechanism,perfects the relevant laws and regulations of land levy,and strengthens the supervision and use of land transfer funds.In order to make better use of land finance in the future,this paper puts forward some countermeasures and suggestions.