Exploring The Contradiction Between Fiscal Revenue And Expenditure In Traditional Resource-based Cities

City Y of Shanxi Province is a typical resource-based city,which started and flourished because of coal and has made outstanding contributions for China’s economic development.In recent years,due to the double impact of increasing economic downward pressure and tax reduction,the Y city’s economic development and fiscal revenue,which depends heavily on coal resources,are facing severe challenges;at the same time,the personnel salary standards continues to increase,the expenditure on people’s livelihood such as education,pension and medical care only increases,and the amount of debt service increases year by year,which makes Y city’s fiscal expenditure increase continuously and the expenditure structure is gradually solidifying.The contradiction between fiscal revenue and expenditure needs to be solved urgently,and it is necessary to study the contradiction between fiscal revenue and expenditure in resource-based cities.By studying Y city’s fiscal revenues and expenditures from 2013 to 2022,the paper summarizes and outlines that Y city’s fiscal revenues are small in scale,low in growth rate,and poor in quality,while the fiscal expenditures are large in scale,fast in growth rate,and solidified in structure,the balance between fiscal revenue and expenditure is widening year by year,and the imbalance between revenue and expenditure has worsened.The main reason is that Y city "one source of coal is dominant" and "one enterprise is dominant" economic structure factors lead to heavy reliance on the coal industry,so it is more affected by the market;affected by macro factors such as tax and fee cuts and the COVID-19 epidemic;financial and administrative powers mismatch and other institutional factors;rigid expenditure increase,and the expenditure structure solidifies;imperfect budget management and performance assessment,etc.Finally,on this basis,this paper puts forward suggestions and countermeasures to alleviate the contradiction between financial income and expenditure in Y city,that is to do a good job in supporting the succession of industrial transformation,to cultivate tax sources and financial sources,to increase the efforts to strive for transfer payments,to continuously optimize the structure of financial expenditure,to strengthen budget management,and to improve the performance of the use of financial funds,etc.