Research On Urban Fiscal System Under The Process Of New-Type Urbanization

New-type urbanization has become a national strategy, which is people-oriented. City occupies a very important position to absorb surplus rural labor force. The fundamental reason is that the city can achieve transaction cost minimization and agglomeration effects, and thus more able to meet the person’s needs of survival and development as a rational "economic man". However, a large number of various elements in the process of transfer to city also brought all kinds of problems such as traffic congestion, air pollution and slow process of migrant workers because of the low urban governance capacity. Urban fiscal is an important guarantee for public goods in the urban supply, and also the pillar and foundation of urban governance capacity. Urban fiscal has important significance during the promotion of the smooth implementation of China’s New-type urbanization strategy.The current urban fiscal system framework is built on the basis of the tax-share reform in 1994, since when there has been no big change. Urban fiscal system under the framework of the tax-share reform effectively promote the two decades of rapid industrialization and urbanization development. However, with the new-type urbanization step by step, large numbers of people flue into the cities, contradiction between cured urban fiscal system and new process of urbanization in the city increasingly prominent.Based on the above background, this paper attempts to answer the following questions:First, why the city has a special status in new-type urbanization? Reason urban fiscal importance Where is what? Second, outstanding problems of cities in new-type urbanization are mainly reflected in what areas? Focus on urban fiscal system has what kind of impact on Surplus labor transfer? Third, what is the outstanding problem in urban development reasons behind the fiscal system?The main contents of this paper are as follows:1. The importance of urban fiscal. The biggest difference between urban and rural areas in its ability to achieve agglomeration effect and minimize transaction costs. The city has two main functions:First, the economic function; the second is the social function. The ultimate destination is to meet the survival and development needs of people as rational "economic man". Labor and other various elements in the process of transfer to city in pursuit of effectiveness and efficiency will have a huge demand for public services and infrastructure, urban fiscal is an important guarantee for the supply of public goods and also the pillar and foundation of urban governance capacity.2. The outstanding problems in the process of new-type urbanization. China’s urban problems highlighted in the process of new-type urbanization mainly in the following aspects:(1) "urban disease" has been generally appear; (2) the transfer of rural surplus labor is not smooth, people of migrant workers in public service supply difficulties encountered; (3) extensive industrial growth has led to inefficient allocation of resources and the bottleneck of resources and the environment; (4) the blindness of urban sprawl, land urbanization is faster than human urbanization. (5)city government debt problems are more serious.3. Analysis of fiscal system causes of urban development problem. Overall reasons:on the one hand, the tax-share reform form the "financial revenue, powers move up and expenditure responsibilities sink" financial structure, so that the financial capacity of the city is difficult to support new-type urbanization in a large number of public goods (and services) supply; on the other hand, the framework of urban fiscal system on the whole is revenue-incentive model, to the lack of public service incentives for human. Specifically:(1)powers, expenditure responsibilities, and with the new division of financial resources cannot meet the process of urbanization; (2) the curing of urban fiscal system is difficult to adapt to the needs of migrants in public service; (3) revenue-incentive system to promote the extensive industrial growth; (4) urban fiscal investment and financing system cannot meet the demands of urban infrastructure; (5) over-reliance on land finance boost the city’s blind expansion; (6) inside the city financial system defects.4. Path selection of New-type urbanization in the urban fiscal reform. The outstanding problems existing in current urban development, it is necessary to construct a revenue and public service provision bilateral incentive urban fiscal system. The main ideas are as follows:urban fiscal reform will be included under the whole tax-share reform and consider the broad framework, fully taking into account enormous spending pressures of city in the process of new-type urbanization. (1) Reasonable division of the basic powers of new-type urbanization,an appropriate increase in expenditure responsibilities of city’s higher levels of government; (2) Reasonable division of the layers of government revenue,enhance the support capacity of urban fiscal; (3) Adjust and improve the expenditure responsibility division,an appropriate concentrate expenditure responsibility of municipal; (4) Combined with the local tax system reform, moderately enhance the Co-ordination capacity of city; (5) To build "revenue-public service" bilateral incentive of the urban fiscal system.