Study On Finance Support For Sustainable Development Of Resource-based City

The resource-based city is an important part of the national economy, as industrial basement, it provides energy and raw material for economic development, produces a lot of employment opportunities, promotes regional economic development, accelerates urbanization. In addition, take advantage of its extensive industry chain and the ripple effect, turn into the basement for the development of the construction industry, chemical industry, power industry and a variety of service industries. However, due to resources irrefragable, the increasing exploitation of resources result in reserves atrophy, the advantage of resource-based city decreased, and there are many historical issues, Promote the sustainable development of resource-based city is not only the inevitable requirement of accelerating the transformation of economic development and achieving the goal of building a well-off society,but also an important task to promote coordinated regional development, balance promoting the over-all development of new-style industrialization and urbanization, maintaining social harmony and stability, constructing the ecological culture. Fiscal policy plays an irreplaceable role for the sustainable development of resource-based city, such as transfer payments providing financial support for regional economic development, invest in resource-based cities to stimulate economic growth. We can also use tax incentives and other policies affecting capital gains rate, create a favorable environment for economic development.According to coal mine, Huainan was builted in1950. It is an important industrial city in Anhui Province, the member of "Yangtze River Delta city group" The city’s economy dominated by heavy industry, coal industry as the pillar industry, both China’s "three bases":million tons of coal bases, east of thermal power base and coal chemical industry base and the main leader of "Anhui Power Transmission" Huainan city make important contribution to Anhui Province and the country’s economic development. But it is also facing the common problems of resource-based city, such as the irrational economic structure, the heavy burden of history, serious environmental damage and so on. Seek the road of sustainable development is imminent. In2013the State Council issued the "planning for the sustainable development of resource-based city", it provides a way to realize the sustainable development of the resource-based city. On the basis of resources reserves and the sustainability of economic, Huainan is classified as mature resource-based city. The plan also points out that we must promote mature resource-based city leap forward development. By2020, the coordination of economy and environment come into being, substantial progress was made in the transformation of economic development mode.This paper analyses the actual financial situation of Huainan City, combined with local economic development, trying to find financial support which can promote the sustainable development of Huainan City. Chapter arrangements of this study are summarized below:The first chapter introduces the research background, purpose and significance and research methods of this paper, domestic and international research review. Since public finance have functions of allocation of resources, income distribution and stabilize the economy, financial supports are essential to the sustainable development of resource-based city. Domestic and foreign scholars have thorough research to the industrial transformation of resource-based city and sustainable development. In their study, they have emphasized the important role of government in the sustainable development of resource-based city.The second chapter introduces the conceptual model and its main content of resource-based city sustainable development. Due to the existence of market failure, and the direction of financial investment consistent with the goal of sustainable development, therefore resource-based city needs financial support from the government on its path towards sustainable development.The third chapter organizes a lot of data, analyzes Huainan city economic and social development, the advantages and disadvantages of Huainan, fiscal revenue and expenditure scale of Huainan. Furthermore, the paper elaborates Huainan’s municipal financial supports for the sustainable development and its deficiencies.The fourth chapter describes the development modes of foreign resource-based cities, and sum up experience for reference, despite the different levels of economic development.In the fifth chapter, on the basis of the above analysis, standpoint of the Government, some proposals about fiscal and tax are proposed to promote the sustainable development of resource-based city. Including resource development to improve the compensation mechanism, declining industry assistance mechanism and alternative mechanism for industry to support; optimize the structure of fiscal expenditure; widen the financing channel. Through these reforms, we hope to beneficial to Huainan city of realizing sustainable development.