The truth that I learned after it was exposed: the reason why local finances are tight, and the money is spent like this
Local finances are tight, a topic that has been frequently mentioned in recent years. In order to alleviate their financial difficulties, some local units do not hesitate to adopt some extreme measures such as arbitrary fees, fines, and disposal of state-owned assets. These practices have not only aroused social doubts and dissatisfaction, but also adversely affected the sustainable development of the economy and the protection of people's livelihood.
First, the big environmental impact
The predicament of local finances is related to the overall economic situation and policy environment. With the slowdown in economic growth and the advancement of structural adjustment, local fiscal revenue and expenditure have been greatly affected. At the same time, changes in the policy environment such as environmental protection policies and financial supervision have also had a certain impact on the local fiscal situation.
From the perspective of revenue, local finances mainly rely on tax revenue and land transfer revenue. Both incomes have been hit by the economic downturn and the downturn in the real estate market.
From the perspective of expenditure, local finances are facing multiple pressures. On the one hand, in order to cope with the economic downturn and the impact of the epidemic, local governments need to increase fiscal investment to stabilize economic growth and support people's livelihood and market players.
On the other hand, local governments also have to bear the responsibility of spending on basic public services such as epidemic prevention and control, ecological environmental protection, education and medical care, while debt repayment and interest repayment and grassroots "three guarantees" are rigid expenditures.
Second, excessive dependence on land finance
Some localities blindly pursue high-speed growth in economic development and rely too much on land finance. They obtain fiscal revenue through large-scale land transfer and real estate development, while ignoring the sustainable development of the economy and the rationality of the financial structure. Once the real estate market adjusts, local government fiscal revenue will be greatly reduced, resulting in fiscal constraints.
Land finance refers to the practice of local governments acquiring funds through the transfer of state-owned land use rights, and then transferring these funds into the general public budget to make up for the gap between fiscal revenue and expenditure. There is a risk of unsustainability in this practice.
On the one hand, land resources are limited and cannot be developed and transferred without restrictions. On the other hand, land revenue is one-time and cannot be a means of obtaining regular and stable fiscal revenue. Moreover, excessive reliance on land finance will also lead to some negative effects such as inflated housing prices, waste of resources, and social inequality.
3. Irregular fund management
It shows that some places lack a scientific budget and financial management system when raising and using financial funds, resulting in the lack of effective supervision and control of the use and allocation of funds.
In some places, there are problems such as overinvestment, illegal guarantees, and the demolition of the eastern wall to replace the western wall, resulting in the waste and loss of financial funds. At the same time, there is still a lack of transparency and openness in local financial management, which makes it difficult for the public to supervise and understand the use of fiscal funds.
epilogue
There are three reasons for the tight local finances: large environmental impact, excessive dependence on land finance, and irregular fund management. These reasons reflect the problems and deficiencies in the economic development of some localities, and also bring challenges and risks to local financial stability and sustainable development.
Therefore, local governments should fundamentally change their understanding and attitude towards finance, establish a scientific and reasonable fiscal system and mechanism, optimize the financial structure and layout, standardize financial management and operation, and improve fiscal transparency and openness, so as to achieve a balance between fiscal revenue and expenditure, ensure people's livelihood and well-being, and promote economic and social development.
