Liaoning Province Research The Relation Between Financial Income And Economic Growth

Since the reform of tax allocation, with the rapid growth of economy, local fiscalrevenue of our country has entered a rapid growth period. From1994to2011, Fiscalrevenue in Liaoning province from￥15.37billion grew to￥264.05billion. Seventeenyears, local fiscal revenue has increased more than17times. From1994to2011,GDPincreased from￥246.18billion to￥2.20259trillion.There’s an interdependence relationship between fiscal revenue and economicgrowth. How to promote local economic development above specific to the local fiscalrevenue, mostly reflected in the smooth realization of the functions of the localgovernment to help meet the needs of local economic development conditions andpromote local economic and social stability in all aspects of the coordination ofdevelopment. However, in the process of local fiscal revenue increased need to hold adegree, if the pace of development of the economy and fiscal revenue growth rate willresult in mutual disharmony local governments do not want to see the negative effects.Specifically, if government revenue scale growing too fast will cause greater pressure tothe local economy and society, and to deploy the capital the excessive market should flow,reduce the rate of economic development cycle. Slower fiscal revenue will result in theloss of the guiding force for economic and social development, not enough strength maydeviate from the economic development back on track. At the same time, economicgrowth has also decided the financial scale, the number of structures. Both economictheory and practice have told us that a common truth: that economic growth determinesfiscal revenue, the pace of economic development determines the size and growth rate offiscal revenue.In response to this situation, the paper selected for the study of the interactionbetween the local economic development and revenue associated Liaoning Province,local finance as the object of study, the article uses a combination of theoretical researchand data analysis methods to find the root cause of the departure from the economicgrowth of fiscal revenue. The article is divided into four chapters of the introduction andthe text of five parts, the first introduces the research background and theoretical basis of article writing, followed by a general introduction for to the analysis of the economicsituation in Liaoning Province, in the study on the basis of the other scholars at home andabroad econometric principles to build a regression model for analysis of economicgrowth and fiscal revenue and, ultimately, to explore the reasons they are not coordinated.Finally, the main reason to conduct in-depth research, sum up experience, and makepolicy recommendations.