news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

when there is a conflict between revenue and expenditure, streamlining the administration becomes inevitable.

recently, the national finance and development laboratory released a report stating that due to the impact of industrial transformation and the real estate market, many places have entered a state of long-term tight fiscal balance, fiscal contradictions of local governments, especially grassroots governments, have gradually become prominent, and fiscal sustainability has gradually deteriorated.

specific data shows that in the first half of this year, the fiscal self-sufficiency rates of 31 provinces and cities declined to a certain extent compared with 2015, with nearly half of the regions experiencing a decline of more than 10%, half of the regions experiencing a fiscal self-sufficiency rate lower than the pre-epidemic level, and one-third of the regions experiencing a fiscal self-sufficiency rate lower than last year; in the first half of this year, only shanghai achieved a revenue and expenditure surplus, and 17 regions experienced a fiscal self-sufficiency rate of less than 50%; in the context of declining tax revenue and land finance and slowing debt issuance, non-tax revenue has become the only way for local governments to expand independently, and together with transfer payment revenue, it makes up for the fiscal revenue and expenditure gap. the growth in non-tax revenue is mainly due to local governments increasing their efforts to dispose of resources and assets, investigating and handling major cases, and other fines and confiscations.

the continued growth of non-tax revenue and the increasing proportion of non-tax revenue may damage the local business environment and hinder the development of local economic development potential. whether it is asset disposal or fines and confiscations, it is not sustainable and increases the difficulty of building a new type of clean and friendly government-business relationship.

therefore, as major provincial-level departments continue to face a tight balance between fiscal revenue and expenditure, tightening the belt should become a must for all regions.

in order to ease the increasingly tight fiscal balance in various regions, the central government has focused on reshaping and reconstructing the matching relationship between the central and local fiscal powers in recent years. to truly and effectively promote the fiscal and taxation and fiscal system reforms that match the government's fiscal powers, the fundamental solution is to promote the fundamental transformation of government functions. this also requires further clarifying the boundaries between the government and the market, truly allowing the government and the market to perform their respective duties, eliminating the mixing of government roles, and better playing the role of the government in public services and the protection of procedural justice in economic and social order, while allowing the market to play a decisive role in resource allocation.