Research On The Transformation Of Local Government Land Finance

From the late 20 th century to the beginning of the 21 st century,China's economy grew rapidly and became the second largest economy in the world.In the process of economic development,"land sales finance" has received wide attention from all sectors of society.Due to the reform of the tax sharing system in 1994,the local government's income has suddenly decreased,but its pressure on spending has not been reduced,and local governments have to seek financial resources from other sources.With the introduction of housing commercialization system at the end of the last century and the Land bid invitation,auction and listing system at the beginning of this century,local governments have found that benefiting from land acquisition can effectively fill the gap between fiscal revenues and expenditures and at the same time develop the economy.Therefore,"land sales finance" is loved by local government.With the support of "land sales finance",vigorous urban construction and industrial investment activities have been carried out throughout the country.The fierce economic development competition has objectively accelerated the process of urbanization in China and raised the level of economic development,but it has also brought about great negative effects.First,the urbanization driven by "land sales finance" is only urbanization of land rather than humanization in many cities.The connotation and quality of urbanization are insufficient.Second,due to excessive dependence of local governments on "land sales finance",China's economic development Excessive reliance on investment and lack of endogenous driving force for economic growth;Third,due to uncontrolled land financing by local governments,the debt rate of local governments has risen at an extremely fast pace,increasing systemic debt risk;and fourthly,the reliance on land finance has led to an explosive increase in urban housing prices in multiple rounds,which has increased the gap between the rich and the poor.Fifth,because the government is monopolized in the land primary market,the individual's interest in land acquisition is not Being satisfied will cause social problems and affect social stability in the process of land acquisition.Malpractices of "land sales finance" have indicated that it comes to the crossroads of transformation.This paper studies the transformation of "land sales finance".First of all,this paper introduces the system foundation and current situation of China's "land sales finance".Then,to test and verify the relationship of "land sales finance" and economic growth,this paper puts forward the "inverted U" curve hypothesis,and verifies the date of mainland China 31 provinces(municipalities directly under the central government,autonomous regions)from 1998 to 2015,found that the fitting is good.It shows that "land sales finance" promote economic growth at first and then it comes down.Late to urbanization,the effect of "land sales finance" on economic growth are falling.Then,this paper analyzed financial dependence to land in China,from the point of a nationwide,land financial dependence is on a rapid rise since 1998,so far it remains relatively stable and appeared a downward trend in recent years.From the point of regional contrast,"land sales finance" dependence appeared different across areas,the land in developed region financial dependence decline significantly,and the less developed areas of land financial dependence is still high.On the basis of the above analysis,this paper discusses the necessity and feasibility of "land sales finance" transformation.Meanwhile this paper tries to put forward the transformation path.This paper holds that the transformation of "land sales finance" has four objectives: the political goal is to ensure social stability in the transition process.Fiscal goal is to set up a new and sustainable local fiscal and taxation system.The economic goal is to transform the mode of economic development and improve the quality of economic development.The social goal is to narrow the gap between rich and poor and promote social harmony.At the same time,the "land sales finance" transformation also faces four major premise,including building the perfect real estate registration system,defining the property rights,establish property tax relief work standards and promote the real estate tax legislation.The principle of "land sales finance" transformation is to give consideration to the full authorization of regional differences,to grasp the gradual change of pace and to ensure the stability of the benefit distribution.Finally,the paper holds that the direction of "land sales finance" transformation includes three aspects: first,the local government's revenue should be changed from the land transfer and real estate transaction to the real estate.Second,the new real estate tax reform should simplify the tax and broaden the tax base.Third,the government should build a diversified housing security system.