Research On The Financial Policy For The Transition And Development Of Resource-based Areas

The report of the Nineteenth National Congress of the Communist Party of China pointed out that "China's economy has changed from a stage of high-speed growth to a stage of high-quality development,and is in a critical period of transforming the mode of development,optimizing the economic structure and transforming the driving force of growth.Building a modern economic system is an urgent requirement for crossing the threshold and a strategic goal for China's development."In accordance with the spirit of the General Assembly,China's economy now needs to achieve rapid transformation and change the driving force of growth,especially the development of the pillar industry economy in resource-based areas.Because resource-based areas mainly rely on primitive natural resources to drive the economy.Such an industrial model makes the economic growth of our country from a single source,especially the resource-based areas.Once resource problems arise,such as resource depletion,low quality and so on,will they lead to economic problems.According to the definition of resource-based areas,Shanxi Province belongs to a typical coal resource area,and the second industry is the largest industry among the three major industries.Because the resource industry is too large,the growth rate of Shanxi's regional GDP has been limited under the background of the structural reform of the national supply side.Therefore,only by changing the industrial model,increasing the proportion of tertiary industry and reducing the exploitation of resources,can Shanxi's economy reduce its dependence on resources and achieve sustainable development.Based on the three major policy theories of externality,public finance and regional finance,this paper analyses the problems of Shanxi's resource-based economy and the support of fiscal policy for the transformation,as well as the policy effect and the problems existing in the financial policy during the transformation.It is found that there is a large proportion of indirect tax,a growing gap caused by the reduction of total income and the increase of expenditure,and a worsening environment.Then,using the data of economic transformation and financial revenue and expenditure of 11 cities in Shanxi Province from 2008 to 2017,we construct a panel model to empirically analyze the influencing factors of financial policy in the transformation anddevelopment of Shanxi's resource-based economy.Finally,drawing lessons from the successful financial policies of promoting the transformation of resource-based areas at home and abroad,the paper puts forward countermeasures and suggestions to solve the above problems,which can provide some reference for Shanxi provincial government to formulate financial policies.The possible innovation of this paper is to select the relevant representative tax and expenditure data of 11 prefecture-level cities in Shanxi Province in recent 10 years to build a panel model,quantitatively analyze the influencing factors of Financial Revenue and Expenditure for promoting the transitional development of Shanxi resource-based areas,and accordingly put forward policy recommendations to speed up the transformation and development of Shanxi.Empirical results show that VAT has a negative impact on economic transformation;business tax contributes to economic transformation,possibly because,after the increase of business tax,a part of business tax can be deducted,which reduces the tax burden of the tertiary industry to some extent;resource tax has little effect on the transformation;increasing expenditure on education,science and technology and social security is conducive to the development of transformation.Finally,synthesizing the full text analysis,the paper puts forward the countermeasures and suggestions from three views of the government budget,fiscal revenue and fiscal expenditure to promote the transformation and development of Shanxi's economy.