The Research On The Relationship Between Land Finance And Tax Sharing System In Fuzhou City Of Jiangxi Province

The 1994 fiscal reform establish the tax system that was based property rights and powers between the central and local governments.But with the rapid development of China's economy,tax sharing fiscal system exposed many drawbacks in actual operation.Land finance also burst out under the tax sharing system.Land finance can attract outer capital inflows,which led to rapid economic development,the most important thing is the ability to increase the local fiscal income.However,due to shortcomings of land finance and thus it will brewed some problem with land,financial risk,economic risk and a series of uncontrollable negative factors that will have a devastating impact on local economic development on the existing system.How to solve the financial problems with land has become a hot research topic.On the basis of the relevant literature on retrospective paper,we use econometric research methods to analysis and research about the current financial system problems in Fuzhou government's land finance.The main method is the use of econometrics regression model.Through the information about proportion of land revenue in the local fiscal revenues and the proportion of local fiscal revenues in financial expenditure.This research affirm that land finance was triggered by the defects of tax sharing fiscal system.In order to display the relevance of the financial system and the land between the financial,the paper analyzed the following aspects.(1)Trace the history literature,define the concept of land finance that was studied in this paper and China's current financial system contents,the connotation of land finance,problems and its operation mechanism;(2)Theoretical background and financial system that was related as well as the theoretical basis of land-related finance and rent.(3)State financial system from the political and legal systems in order to qualitative analysis of the land finance,and it also confirmed the complex relationship between the land finance from theoretical point;(4)Through interview the local people and some data in internet,the current financial situation of economic land in Fuzhou City was achieved.Then use the data from the Statistics Bureau's data and Fuzhou government's data to analysis the relationship between land finance and tax sharing fiscal system.(5)Then proposed countermeasures and suggestions from the perspective of the tax sharing financial system in order to solve land financial problems.The key to solve the land financial problems based on many points:govern the relationship between upper and lower governments,division the powers and financial authority reasonable,improve the local tax system and improve the payment transfer system,in order to preventing land fiscal risks effectively.