Study On Transformation Path Of Land Sales Finance In China

Since China performed the reform and opening up policy,the land use system has experienced the transition from the "free-unlimited-no flow" to the "paid-limited-flow".China's featured urban-rural dual land property rights system,land expropriation system,land sales system and tax-sharing system have jointly created China's current land finance.The nature of land finance is the means of governments to obtain land value-added income using land fiscal functions.The dependence on the practice of "land sales finance" of local governments not only causes the inequality of land value-added income distribution,low efficiency of land resource allocation,and growing social contradictions,but also leads to serious imbalance of industrial structure,"real estate" and "hollowing out" issues of economic development in our country.In terms of the limitations of supply and demand,or from the perspectives of fairness and efficiency,the action taken by local governments relying on one-off land sales revenue to maintain their fiscal expenditure and the urban construction needs is instability and unsustainability,and social problems resulting from high price of land and house,inequality of land value-added income and"false urbanization" have seriously restricted the harmonious development of our economy and society.Therefore,it is essential to implement the transition.Setting about the existing problems of land finance itself,its effects and its trend in China,this paper argues the overall conception changing from land sales finance to land management finance.Focusing on the relevance,systematicness of land finance transformation and the feasibility of policy practice,this paper comprehensively elaborates land sales finance transition of path selection based on the logical thinking of "consolidation","increasing income",and"reducing expenditure" and puts forward more realistic safeguard measures.(1)Through analyzing the current situation of land finance,this paper puts forward the existing problems in the structure of its revenue and expenditure,further analyzes the effect of finance,economy and society produced by current land finance,and empirically studies the evolution trend of land finance.Then this paper puts forward the necessity of land finance transition in China.From the points of current land revenue,the tendency of "heavy rent,light tax" is obvious,and land revenue mainly comes from that of land sales,which leads to the reality that farmers' land income rights is deprived,meanwhile,the structure of land tax is "heavy in circulation but light in holding".From the points of current land fiscal spending,it is "partial to towns but despised of rural areas".The current land finance overdraws the land income for years in the future.From the points of financial effect,the current land financial contribution to the finance of local governments is ups and downs since the financial instability and unsustainability hides financial risks.From the points of economic effect,by constructing a research framework based on VAR model,the empirical analysis finds that the practice of current land finance has made great contribution to rapid economic growth in short time,but in the long run its promoting effect is unsustainable,and even hinder it;From the points of social effect,that social conflicts caused by land expropriation,the corruption caused by local government dependence on "land sales finance",high house prices pushing up social cost to expand the gap between the rich and the poor,all of them have increased social instability and risks.From the points of the evolution trend of land finance with economic growth,it accords with the inverted u-shaped curve hypothesis,which shows the unsustainability of current land finance.(2)Based on the analysis of the previous chapters,this paper explores the economic and institutional roots of current land finance forming,and further explores the system obstacles faced by China's land finance transition.Referring to relevant national or regional land fiscal transition process and related management experience,the paper puts forward the targets of land finance transitionin in finance,economy and society and puts forward the principles of transition to develop the economy and increase financial resources,to balance the interests among individuals,governments at all levels and enterprises,and to take on reasonable burden.As well,based on the logical thinking of "increasing income","consolidating" and "reducing expenditure",the paper raises path selection of land finance transition suitable for China.From the perspective of "consolidating",only the system of fiscal revenue and expenditure taking economic sustainable development as the fundamental is sustainable,so the successful transformation of land lsales finance in China requires the reform of the transmission mechanism of existing land finance constraining the sustainable development of economy.Referring to the method of analyzing the "resource curse" transmission mechanism,this paper explores the transmission mechanism of current land finance dependence constraining the sustainable development of economy with the normal and empirical analysis.For the cause of land finance restricting sustainable economic development of the transmission mechanism,the targeted policy is proposed to block the undesirable conduction mechanism of land sales finance restraining economic development by improving the management of land assets,allowing for implementation of reasonable land finance transition,and promoting the sustainable development for China's economy.The empirical results show that,the crowding effects for education,manufacturing,technology innovation,and human capital accumulation caused by high house price which results from the practice of current land finance,and the institution weakness effect such as the rent-seeking corruption,the gap between rich and poor,and a series of social conflicts resulting from the institutional factors of the practice of current land finance,have hindered the sustainable development of economy in China.As for the cause of the transmission mechanism for the practice of current land finance restricting sustainable economic development,the specific stratigics of improving the management of land assets are put forward.?Handle the relationship between the local government and the land market correctly.?Regulating house price to promote the development of real estate industry healthy and steady.?Reforming land expropriation system and establishing the unified urban and rural land supply market.?Completing the system of paid use of land to reducing the cost of land use.?Clear rent,regular tax and less fees.From the perspective of "increasing income",increase channels of financial resources to raise revenue in order to ensure the governments' ability to provide public products and services,and to reduce local governments' over-reliance on land revenue.Research on land management experience of other countries or regions overseas shows that land value capture is the most tool to increase income and the real estate tax in the holding of properties is the main way to obtain the land income for most countries,which can become the main tax for local finance.Through real estate tax system reform to levy the tax in the holding of properties,the practice not only increases the fiscal revenue of local governments,but also enables local governments to get rid of excessive dependence on "land finance".By analyzing the legal basis for the real estate tax system reform in our country,combining the realistic requirement of deepening fiscal and taxation system in our country,the paper puts forward the principle for China's real estate tax reform and the overall thinking,and further explores the concrete scheme of real estate tax reform in the circulation and the holding of properties.Finally,based on the empirical estimates of the Vatican Bosch model,we estimate the income replacement rate of the residential real estate taxation in the holding of properties for land sales revenue,and the empirical research shows that:in the short term,housing property tax is hard to replace land sales revenue,but in the long run,China's residential real estate taxation will have higher rate of substitution for land sales revenue.From the perspective of "reducing expenditure",finance is the material basis for the government to fulfill its function,and it is a means to perform and realize the function of the government.Based on the problems in the management of income and expenditure of land sales finance,the paper puts forward to perfect the management of income and expenditure of land finance to maximize the efficient use of public funds,which is important component to realize the transition from "land sales finance" to "land management finance".From the points of improving the management of land revenue and expenditure and constructing a high efficient government,this paper illustrates how to achieve the target of land sales finance transition to reduce expenditure,and how to achieve good management of land revenue and efficient operation.From the view of perfecting land revenue and expenditure management,to establish public finance system is needed,the land sales finance included in public budget completely.From the view of transforming government functions and constructing effective government,this paper puts forwards "reducing expenditure" in the supply of public infrastructure,the government itself and the efficiency of government work,to promote governments actively to change their own function orientation transforming from "economy-construction-type governments" centering on land operation to "service-oriented governments",pushing forward governments actively participation in land sales finance transition.(3)In view of the origin of current land sales finance forming and the problems such as government incentives distort,land use plans changing at will,land expropriation and compensation information not transparent exposed in the implementation of current land sales finance,the paper proposes improving the local tax system and establishing the fiscal and taxation systems with the finance rights matching the duties by deepening the reform of the fiscal and taxation systems,improving housing security system,standardizing the management of local government debt,improving the government achievements appraisal system and the related laws and supervision mechanism,for guaranteeing the smooth transition of land sales finance in China.