Study On The Potential Risks And Countermeasures Of Local Finance In Hangzhou

The local financial system is an important part of China's financial system.After the implementation of the fiscal system of tax sharing system in China,the proportion of local finance in the distribution of fiscal revenue is low,and most of the local financial income is concentrated on the higher government,especially the central government.With the sustained slowdown of China's economic growth in recent years,the growth of local government revenue has also decreased.At the same time,the new round of fiscal and tax reform,and the increase of the local fiscal revenue further compress the local fiscal revenue,but the total amount of local financial expenditure is still growing rapidly,the payment responsibility is very heavy,the contradiction of local financial revenue and expenditure is prominent,the debt regulations are outstanding.The potential risks of local finance are increasing.The fundamental reason for the potential risk of local finance is that the political system of centralized system and the fiscal system of decentralization system can not cooperate with the reform of the financial system.At the same time,the weak awareness of the risk of local government,the lack of restraint supervision mechanism and the unsound legal system of local financial risk are all important reasons for the local financial risk..To prevent the potential risk of local finance,it is necessary to standardize the income of land transfer,improve the local financial system,establish the local financial risk management system,the local financial risk early warning mechanism,and improve the relevant laws and regulations.As one of the eastern coastal developed cities,Hangzhou's local finance is better than most of the central and western regions,but there are still many potential risk factors.Through the analysis of the financial revenue and expenditure data of Hangzhou in recent years,it can be found that,in the early days,the local finance of Hangzhou was the same as most places,the local fiscal revenue was slow,the land finance was outstanding,and the source of tax funds was limited.At the same time,the total amount of local financial expenditure increased rapidly and the demand for public construction funds increased.The greater the population and the greater the pressure on people's livelihood,the greater the potential risk is to balance revenue and expenditure by selling land and local debts.In order to deal with the potential risks of local finance,the local government of Hangzhou has actively explored the healthy development of local fiscal revenue and expenditure from the aspects of promoting local financial management functions,optimizing the tax structure,optimizing the fiscal expenditure,standardizing local debt,perfecting the financial supervision mechanism,developing the local economy and strengthening the local tax sources.In the last two years,the economic development of Hangzhou has developed well,the growth of fiscal revenue has been restored quickly,the financial funds are guaranteed strong,and good experience and practice have been created to solve the potential risks of local finance.The development of local finance in Hangzhou has both typical and universal characteristics,and provides a perfect financial and tax system in China.An important reference.