Research On Local Fiscal Pressure,Fiscal Transparency And Nontax Revenue Growth

Under the tax sharing system,the central and local governments have realized the hierarchical budget and established the central financial macro-control status.According to the principle of matching administrative power with financial power,the central and local governments divide the scope of fiscal expenditure and fiscal revenue.However,with the decentralization of expenditure authority,fiscal revenue continues to converge to the central government,and the fiscal balance between the central and local governments has been broken.Under the limitation of insufficient tax sources,local governments have to seek new sources of income.The territorial management characteristics of nontax revenue give local governments greater management authority and become an important channel for local governments to alleviate financial pressure and make up for the shortage of tax sources.Especially since the supply side reform,the growth trend of nontax income shows an obvious seesaw effect.Nontax revenue is an important source of national fiscal revenue.Standardizing nontax management is not only related to the performance of national functions,but also related to the distribution of national income.Based on the framework of fiscal decentralization system and budget management system,this thesis analyzes the role of local fiscal pressure caused by the imbalance of administrative power and expenditure responsibility and the fiscal transparency of budget management on the expansion of nontax revenue.Using the provincial panel data from2012 to 2018,the dynamic panel model,threshold regression model,spatial autoregressive model and spatial Dobbin model are constructed respectively,and the following conclusions are obtained:(1)The local fiscal pressure caused by the fiscal decentralization of the tax sharing system is the main factor driving the expansion of nontax revenue: for every 1% increase in fiscal pressure,the nontax revenue coefficient of the general public budget increases by 10.93%.After considering the spatial effect of nontax revenue,it is found that for every 1% increase in fiscal pressure,the nontax revenue coefficient in this region increases by 12.46% and 201.12% in other regions.(2)Fiscal transparency can restrain the growth of nontax revenue.For every 1% increase in fiscal transparency,the medium caliber nontax revenue coefficient will decrease by 0.165%.Without considering the spatial effect,fiscal transparency has no significant inhibitory effect on the nontax revenue of the general public budget,and promotes the scale of nontax revenue after the introduction of cross multiplication.In the spatial Dobbin model,the higher the fiscal transparency,the nontax expansion caused by fiscal pressure in all regions can be restrained.(3)Fiscal pressure has a threshold effect of fiscal transparency on nontax revenue.However,when fiscal transparency is too high or too low,it will restrain or expand non tax revenue.When fiscal transparency is at the intermediate threshold,fiscal pressure will promote its growth,that is,for every 1% increase in fiscal pressure,the nontax income coefficient of the general budget will increase by 1.54%.(4)There is a positive spatial correlation between the nontax revenue of provincial local governments.The larger the nontax income of a province,the larger the nontax scale of its surrounding provinces,indicating that local governments tend to adopt horizontal strategy interaction on nontax income.Based on the intergovernmental competition and promotion mechanism,urbanization level,fixed asset investment and economic openness have a significant spatial spillover effect on nontax revenue in other regions,while the interaction of fiscal decentralization and fiscal transparency will inhibit the growth of nontax revenue in other regions.(5)There are differences in spatial effects between eastern and western regions.The financial pressure in the eastern region has a significant direct effect,but not in the western region;However,the fiscal pressure in the eastern and western regions has significant indirect effects,which can stimulate other surrounding regions to expand the scale of nontax.The interaction between fiscal pressure and fiscal transparency in the western region can limit the non tax growth in the surrounding areas;The eastern region is to curb local nontax expansion.Fiscal transparency has spillover effect only in the East,but not in the West.Therefore,in order to solve the expansion of nontax revenue caused by financial pressure,we first need to improve the local tax system and increase the local basic tax sources,so as to alleviate the pressure of financial expenditure under the excessive power;Secondly,accelerate the management process of local government financial budget performance,break the constraints of GDP competition among local governments,improve the transparency of budget information,and force local governments to improve the efficiency of financial funds by strengthening the constraints of performance indicators;Finally,local governments also need to standardize the management process of nontax revenue,implement overall management of nontax revenue,and improve the current situation of multi head leadership and decentralized management.