Study On Non-tax Revenue Management Innovation For Local Government

Since 1980s, with adjustment of governmental functions, local governments have gradually undertaken most of public finance functions, however, fiscal management system has not carried out corresponding fundamental transform, so under the circumstances of formal revenues insufficiency, local governments chiefly realized fiscal revenues growth through increasing ex-budgetary revenues, and actually central government agreed tacitly various behavior of levying fees for local governments. Owing to the impetus of local governments and department benefits, ex-budgetary funds expanded in scale, its growth rates even exceeded budgetary funds’ growth rates, and matched with budgetary funds, in 1992, ex-budgetary funds was 97.7 percent of budgetary funds, therefore became genuine "the secondary budget".Ex-budgetary revenues became main modes and tools of solving funds insufficiency for local government providing public goods and services, although its positive effects were obvious, if ex-budgetary revenues could play a role in redressing current contradictions and defaults which fiscal management arrangement in terms of routine power and financial power, the activities of ex-budgetary revenues and expenditures must be effectively managed and controlled. Before 1990s, it is because lack of effective management and control for ex-budgetary revenues and expenditures that resulted in larger and larger negative effects.The reasons behind hard to deal with ex-budgetary revenues can be summed up as three aspect. First, ex-budgetary funds properties problems. In market country, ex-budgetary funds dominantly belonged to government funds. In contrast, before 1996 in China, ex-budgetary funds were own funds of enterprise, undertaking, department and local governments, and were not included in budgetary management as well as were dominated by owners. Second, ex-budgetary funds basis problems. The definition of ex-budgetary funds rested on laws in market country, and in China lied in government mandates. That is to say, government would carried out any ex-budgetary funds regulations as they wanted to do something, which differed essentially from western countries that local government had tax levying powers.It is known to all, local government could imposing new taxes or adjusting tax rates if they faced insufficient funds of implementing routine works, but they must be strictly examined by legislative institution. Third, The above two reasons directly lead to the third aspect, because the convenience of ex-budgetary revenues, the haphazard of expenditure, and the soft budgetary restrain, which made local governments more and more depended on ex-budgetary funds increase. So, it is necessary to strengthen management for ex-budgetary funds, which is not a pure management problem of ex-budgetary funds, comprehensive measures must be taken in term of power and functions division between governments, standard fiscal management systems, only these deep problems can be solved ex-budgetary funds management in China.As non-tax revenue has become an important topic in current fiscal reform and development, moreover, non-tax revenue management for local government is sources of all problems, so the author chose "study on non-tax revenue management innovation for local government" as the theme of doctoral dissertation. This paper is on the basis of local non-tax revenue theory, by way of all-round elaborating its history process, basic situations and current problems, analyzing and comparing forms of non-tax revenue management in foreign countries, focused on hot and difficult problems, and finally put forward innovation theory and avenue choice that appropriate to China’s local non-tax revenue management. The framework is as follows:Chpater 1 IntroductionBased on theory study of local non-tax revenue as an essential topic nowadays, and it is not systematic in academic circles in this regard, nonstandard management has often occurred in practice, through current situations analysis domestic and abroad, starting from scope, fiscal system, budgetary management, invoice management, supervision mechanism in terms of non-tax revenue, propose some innovation theory, explore matched reform measures combing with local practices, therefore provide feasible, orientated and practical policy suggestions. On the basis on literature expound domestic and abroad, this paper set forth study objective and study framework, and further summarize some new points and shortcomings.Chapter 2 Theory base on government non-tax revenues Starting from evolutions of ex-budgetary funds, this paper has introduced the backdrop of non-tax revenues notions, and defined its connotation. Through Comparison with tax, analyzed non-tax revenues characteristics, namely compulsory and voluntary coexisted, with compensation, non-fix. According to theory basis of non-tax revenues, non-tax revenues can be divided into four categories:cost compensation, negative externality redress, comprehensive efficiency maximization of state-owned property rights, and important resupply of right distribution. At the same time, explored its fiscal revenues and macro-regulation functions, and facilitating role in economic coordination and development as well as social harmony.Chapter 3 Evolutions of non-tax revenues for local governmentsBecause of wide scope, complex situations, different nature, development process, current situations and management systems of each items, this chapter divided non-tax revenues into administration and undertaking fees, governmental funds, state-owned asset revenues, lottery ticket public welfare funds, penalty revenues and other revenues according to its different sources, introduced evolutions from in connotation and management respectively, and elaborated its history position and role during planning economy and economic transition.Chapter 4 Reality analysis of local non-tax revenuesFirstly, the reality of local governments of China are analyzed and especially the situation in Liaoning Province. Secondly, in order to grasp the development of non-tax revenues nowadays form the whole, the scale, the structure and the management of non-tax revenues of Local government are probed. And lastly, according to the formal analysis, the main management problems of non-tax revenues are concluded.Chapter 5 Hot spots and puzzles analysis of local non-tax revenuesIn this chapter, three hot spots and puzzles of local non-tax revenues are introduced as land-transferring fees, lottery public welfare funds and resource-related charges. On the basis of the characteristics and developments of three hot spots, the management dilemma are pointed and the corresponding measures are also included.Chapter 6 Abroad references for standard management of local non-tax revenuesThis chapter introduced evolution, scale and main sources in some countries, and expounded from the perspective of federal countries and one-party system countries. Analyzed management forms in some developed countries in terms of item scope, fee standard, non-tax revenues management, non-tax revenues supervision and non-tax revenues usage. Although difference between resources, economic structure and economic system in various market countries, which resulted in differences of revenues scale, sources structure and even management power in non-tax revenues regard between central government and local government, however, there are also some common characters. With reference to foreign management experiences, this paper maintained that standard management of local non-tax revenues must perfect fiscal system, promote item category management, establish items and standard according to law, set up strict tax collection and management system, and intensify law constructions.Chapter 7 Management innovation of local non-tax revenuesThe basic approaches of management innovation of local non-tax revenues are as following. Firstly, clean up the items of non-tax revenues and cancel the unreasonable ones. Secondly, non-tax revenues should be included in the government budget so as to ensure the integrality and transparency of local budget. Thirdly, to strengthen the management of local non-tax revenues and to implement strictly "the separate of income and expenditure" system. In the guidance of these approaches, the suggestions to advance the local non-tax renenues management are raised, mainly from the aspects of non-tax revenues items reform, fiscal system, budget management, bill management, supervision management and management information. Meanwhile, the supporting measures are also proposed at the last.