The Local Government Land Finance Issue And Countermeasure Research

In the course of China's economic development and urbanization “land finance” plays an essential role as it provides the city's development with capital.Nevertheless,it is widely criticized for its consequences like contradictions of land expropriation and housing demolition,as well as real estate price increase and widened local loan risks.Thus it brings considerable significance to the economic and social development of the country by understanding the “land finance” issue from an objective point of view and preventing and solving the potential risks thereof.In China,the county-level government and above has the authority to land grant.This essay,from a county-level government's standpoint,using x district of a city in West China,of which the land grant,fiscal revenue and social economy are used as indexes,estimates the market for the transfer of land-use rights and the scale of land finance and analyzes its structure,forms and features separately.It not only explains objectively the positive role land financing plays in the economic and social development,but also specifically indicates the existing problems of land financing.Finally,against the backdrop of domestic and foreign environment,it offers the countermeasure and advices to the issues brought about by land financing.The study shows that from 2008 to 2016,the contract price of land grant had increased from 552 million to 4.044 billion RMB,while the government's land grant fee andits added value had risen from 158 million to 1.322 billion RMB.Land grant has become an important part of the revenue of X district.Land Bidding,auction and listing have become important forms of acquiring the compensable use of land.From 2008 to 2016,the revenue of land finance had increased from 641 million to 3.282 billion RMB.Land financewas a relatively steady share in the local government's fiscal revenue,however,it started to drop gradually after 2012.The inner structure of land fiscal revenue continued to upgrade and the land tax revenue exceeded the revenue ofnational land-use right for the first time in 2016.The tendency of X district's depending on the “land financing” on the whole become weakened.However,the benefits of the land financing lies in the fact that its sufficient supply guarantees the rapid economic growth,the expansion of land accelerates the urbanization,the low-cost industrial land use advances the industrialization and the revenue of land selling promotes the social development.The main current problems incurred are the tendency of the rising revenue of land selling is not continuous,the land acquisition cost becomes higher and higher,the pressure of local loan further intensifies,the disorderly land expansion causes the waste of land and resources which further arouses the social conflicts and so on.To address the issue of land finance requires promoting reforms and policies simultaneously.We should deepen a range of reforms that are based on land system,and build a new relationship between land and economy.Other measures include improving the governance of land grant as well as revenue and expenditure system,stabilizing local fiscal revenueflow,and improving the governance structure and the evaluation system.