The Structure Of Local Financial Revenue And Its Optimization In Inner Mongolia

Under conditions of the socialist market economy, local governments take theimportant responsibility for providing local public goods. So local governments need toraise a scale of revenue in order to maintain the functions of government, meet theexpenditure needs of local government, and to promote local development. In the process,the revenue will be affected by a variety of factors. Therefore, the collection methods andthe cost of the local financial revenue will have a big effect on local economic and socialdevelopment in every aspect. If the local financial revenue structure is reasonable, not onlycan guarantee a appropriate scale of the revenue, but can also improve the local economicenvironment, and play a good role in promoting local development. If not, the negativeeffect will appear. This article is studying the local financial revenue structure.After the system of tax distribution reform in1994, there’s a great changes in China’sfinancial distribution. According to different classification standard, the local financialrevenue structure can be divided into different forms. In this paper, combine the basictheory of the local financial revenue, identified the local financial revenue’s caliber.According to different classification standard of sources of revenue, study the local taxrevenue and local non-tax revenue. Analysis the factors of affecting the structure of localfinancial revenue, the economic factors, tax factors, institutional factors and collection andmanagement factors are the most important aspects. The part of the empirical Analysis usethe data about a decade span of years, and take Inner Mongolia for example, conduct anempirical analysis about local financial revenue structure in Inner Mongolia. From theresults we can see, there are many problems of the local financial revenue structure inInner Mongolia. For example, although with the rapid development of economy as a wholein Inner Mongolia, the local financial revenue in GDP ratio is too low; the distributionbetween the main taxes and other taxes is unbalanced. The structure of the sources ofrevenue is unreasonable; non-tax revenue in revenue ratio is too high; the local industrialstructure is unreasonable, distribution of tax revenues in different industries is unbalanced.All of the problems all have its own reasons, and will have an impact on local economyand social development.Face these problems, the fifth part of the paper puts forward the suggestion thatincluding: rational view of the relationship between local financial revenue and GDP, andmaintain a reasonable proportion to ensure revenue and economic growth in a win-win;consummate the tax structure, give local government appropriate legislative power that make government use tax policy flexibly according to local economy and socialdevelopment, which can play the local advantages. Optimization of the local tax structure,raise the revenue of the three main taxes and improve and reform of other taxes such asproperty tax, resource tax and so on. Build a more standardized and rational tax system. Inaddition, need to consummate the level and efficiency of tax collection; promote therationalization of the structure of non-tax revenue, and actively promote the tax and feereform, standardizing revenue; optimize the industrial structure, change the mode ofeconomic growth, taking a new road to industrialization, accelerate the development oftertiary industry, promote of local coordinate development; consummate the classificationof the financial system, adjust the central and local fiscal relations of distribution,standardize the transfer payment system, consummate the land management system; fightfor finance and taxation preferential policies in minority areas. These measures areexpected to optimize the structure of local financial revenue in order to make thedevelopment of local economy, which is more health in Inner Mongolia.The study of this paper has a strong theoretical and practical significance, aftercollecting a large amount of data, and made a horizontal and vertical comparative analysisabout the realities of the local financial revenue structure, which is innovation. In addition,due to the causes and consequences of problems are inevitable interaction, and when theanalysis of the problems of the local financial revenue structure and summarize thesuggestions, the local financial revenue structure has been seen as a whole to study.Because of any improvement will lead to other changes, the optimization of the localfinancial revenue structure must be a whole set of measures. Only various measurescombine with each other and supervise mutually, the problems of local financial revenuestructure will be solved better that achieve the purpose of optimizing the structure ofrevenue.