Fiscal Policy In Promoting Regional Economic Development

Coordinated regional economic development is a realistic choice for China’s Regionaleconomic development strategy, and it’s the basic requirements of sustainable development, andalso the basic requirements of building the harmonious society. Our country is in economicdevelopment pattern: changing industrial structure, transiting a critical period ofeconomic,narrowing the gap of regional economic development, and realizing our nationaleconomy healthy and coordinated development in the objective requirements of the regionaleconomy are important for healthy and coordinated development. At present, China’s regionaleconomic development incomes more obvious imbalance. Unbalanced regional economicdevelopment is the largest and most important problem in China’s economic development.Unbalanced regional economic development in China involves: the gap between coastal andinland areas of economic development; the gap between the economic development of the east andthe western provinces, the gap between the autonomous provinces, also the North and South,urban and rural.The government’s fiscal policy as an important means of macro-control, can guide the role ofthe resources market, element market, product market these three big markets to make appropriateadjustments, and also guides the various resources in different regions of the structural flow, foradjusting the role of market mechanism and the formation of the irrational market structure,thereby coordinates and promotes the regional economic development, it’s a very importantsignificance. Then through the analysis of our country with the current situation of regionaleconomic development, the fiscal policy plays an important role in promoting regional economicdevelopment.This article absorbs and draws on existing research results. First of all, summarizes andanalyzes some regional ’s economic development theories and regional ’s fiscal policy theories forlaying the theory foundation of the below. Secondly, with economic indicators datas of StatisticalYearbook, analyzes the status quo and changes in trends of China’s regional ’s economicdevelopment, also three factors of regional ’s economic development: natural factors, economic ’sinstitutional factors, and regional ’s open-door policy factors. Thirdly, analyzes fiscal policy’s important role in regional economic development and the existing problem of regional ’s fiscalpolicy. Analysis the current regional fiscal policy problems: fiscal revenues and expenditures andfinancial power division of unreasonable; the central finance investment level and using efficiencyin each area, big difference between tax system and tax preferential policies; unreasonable toaccelerate regional economic development imbalances; financial transfer payment system is notperfect; backward areas of fiscal expenditure structure is not reasonable. And then analyzes theadvanced experience of the regional ’s fiscal policy in the European Union, the United States andGermany, summarizes the reference for China. Then Proposes some fiscal policies for promotingcoordinated regional economic development with structure of fiscal expenditure, fiscal transferpayment system, financial investment and financing system, the system of tax incentives. Finallysummarizes the contents of this article.