Since the mid-1990s, along with the change of land use rights and housing property rights system, and in the rapid advance of industrialization and urbanization, the local government-led economic growth pattern has been formed, with the land capitalization and real estate as the center of the pattern; at the same time, the problem of "land finance" has been raised.This paper argues that the "land finance" can be defined as such a kind of local governments’distribution activity, in the activity, the local governments transfer land and raise land revenue, working as a representative by virtue of the landowners, and then they spend the revenue in accordance with the relevant provisions of the administrative regulations of the central government; it is proved that the arrangements made by the local governments, such as raising the land prices and increasing the land supply, just for a one-time land transfer income, really exist. The "land finance" has objectively increased the resources of the local government, promoted the improvement of the urban infrastructure construction and been helped to provide more local public goods and services, none of these positive effects can be ignored. However, this activity in the long run is unsustainable, and it will not be conducive to the steady growth of the local fiscal revenue, as well as to the provision of the infrastructure and other public goods and services; the fiscal and financial risks and social risks caused by the "land finance" should be taken seriously, and active measures should taken as soon as possible.The paper is divided into five chapters.Chapter1is the Introduction, which elaborates the writing background and significance, and describes the main contentChapter2is the full text of the key content, which mainly analyzes the income and expenditure status quo of "land fiscal". First, the paper argues the content of "land finance" income, and differ the land revenue from land tax revenue; through distinguishing between two sets of important concepts in the land revenue, the paper explore the connotation of land revenue deeply; second, by structural analysis, the paper describes the characteristics of the land revenue:instability in time and the regional imbalance; third, the chapter analyses the relevant provisions and the status quo of the land transfer expenditure, and it also recognizes some the problems of the expenditures; finally, the relationships between the "land finance" budget management and the general public budgets are analyzed.Chapter3of this article analyses the generation of "land finance".There are mainly three reasons:first, the direct cause of the "land finance" is the absence of capital supply system of urban infrastructure construction in China’s urbanization process; second, China’s fiscal and taxation system is imperfect, for both the system of transfer payments from the central government to the local and the local tax system is imperfect, and the local governments are forbidden to issued autonomously; the third are some other reasons, which also led to the distortion of local governments’land transfer behavior.Chapter4of this paper is to analyze the effects and risks of the "land finance". The effects of the "Land finance" include both positive effects and negative effects. On one hand,"Land finance" objectively huge positive effects, such as optimizing the allocation of land resources, and enhancing the resources of the local government, and promoting the transformation of government functions; however, it is undeniable that the "land finance" also had negative impacts, such as the adverse impact on the financial sector. Also, the chapter also analyzes the fiscal&financial risks and social risk in "land finance", such as the "land finance" is not sustainable and local financing platform impact the financial and monetary system.Finally, Chapter5makes some policy recommendations from the point of view of risk prevention. First, the chapter discusses the "demise" and "annual rent"; second, the paper argues that the contradiction and the resulting risk, which rose in the process of land transfer expenditure,exists between the government and the farmers, or between levels of government, can be guarded against by re-regulation; third, China’s land tax system should be improved, and sound taxes system can improve the states’regulatory capacity of land resources and the local governments’ ability to raise revenue; in addition, this chapter proposes improving other related systems. |