The current financial system needs to be perfected

How to avoid the reform of the existing financial system in the old city of the enrichment------------------------Zhiyong of the Chinese Academy of Social Sciences and Finance Research Center Without changing the de facto local ownership of state-owned land today, local governments will still not have the resources to stay with them. If urban planning is carried out on the basis of full respect for public opinion, the likelihood of the destruction of the old City will be greatly reduced should establish a sound tax-sharing system, so that local governments have their powers (expenditure responsibility) Corresponding to the financial wealth and money. In this way, local governments will greatly reduce the impulse to sell land. We should also improve the protection system of personal property rights, so that even if the local government has the impulse to sell, it is difficult to savage demolition editors: In recent years, with the rapid development of urbanization, the country's old city has faced or has been "transformed." Under the banner of "Old City transformation", many old cities which are located in the city's golden lots and have the value of cultural relics are demolished by the Dajian-style "transformation". There is public opinion that this great Leap forward style of the old City is largely due to the local government's "land finance" interest impulse, and this impulse and the current fiscal system, because the money sold to local finance.　　In your opinion, what are the reasons for this big demolition of the Dajian-style Old City transformation? Zhiyong: The destruction of an old city with a heritage value is indeed distressing.　　It should be said that in order to improve the living conditions of the old City reform has a certain degree of rationality, but to go beyond the public will, or the so-called public interest as the pretext of "Dajian" to the substance of the reform of the big demolition, no doubt to be criticized. The Great Leap forward type of Old City transformation and the lack of adequate financial resources of local governments. Many local infrastructure needs improvement, basic public service levels need to be improved, but local government hands lack the necessary financial resources.　　Most realistically, through demolition and development, the release of land resources for local government financing. The basic framework of the current fiscal and taxation system was established in 1994. The 1994 tax reform is very important. In general, it has established the fiscal and taxation system framework which is basically adapted to the socialist market economy, which provides a solid financial basis for the implementation of two active fiscal policies, and promotes the macroeconomic stability. But objectively, by the reform set up to improve the "two" (increase the proportion of fiscal revenue to GDP and the proportion of the national financial Revenue), local finance, especially the province below the relative lack of financial resources, it is urgent to further improve the tax-sharing system to solve. Under such a framework, local governments will make additional financial resources in order to guarantee normal operation and accelerate economic and social development. Even in relatively developed regions, the general budget income is mainly used for the maintenance of operations, economic construction and social development needs of more funds through other means to solve. Local governments bypass the provisions of the budget law and form a variety of governmentDebt。 In addition, local governments have relied heavily on land finance to obtain disposable income.　　The current tax system strengthens the land finance to some extent. The formation of land finance is also related to the evaluation system of local officials ' achievements. Land sales and development are easy to make a big local GDP.　　The temptation is also great for local officials to push for demolition. From the perspective of reality, the formation of land finance also has a "learning" process. Local governments initially only in local areas of the transformation, and later often to the whole city of the redesign, to "run the city."　　Once the concept of "operation" is introduced into the government, the "efficiency" is harvested, and due to the lack of effective supervision, it will inevitably bring about a series of other related problems. Editor: In fact, local governments and developers are the biggest beneficiaries of this kind of "Old City makeover". Ministry of Land and Resources, 7th this month in the National Land and Resources Conference on the disclosure of data shows that last year, China's total land sales amounted to 2.7 trillion yuan, the year-on-year increase of 70.4%. As a second-tier city like Dalian, its income from the land transfer last year has exceeded 100 billion yuan, among the top three in the country, no wonder some readers questioned its "Old City transformation." To the domestic land market so Crazy "feast", the recent public questioning sound, Media asked, why can land transfer gold in the "most strict control year" in the record? How to use the huge "land sale"? Will local "land finance dependency" be further exacerbated?　　What do you think of these questions? Zhiyong: "The most strict regulation year" land transfer gold innovation high, directly from people's future real estate prices will still be high expectations. Local governments have no incentive to lower land prices. Lower prices mean a shrinking of local government wealth, which means that local governments "land sales" will not be so smooth. Buy up do not buy a fall, the decision of the local government in order to continue to obtain land proceeds, will inevitably take the practice of constantly raising the land price. Local governments are able to do this because local governments are monopolies in the supply of land.　　With the advantage of monopoly, the local government can adjust the pace of the land to achieve the goal of rising land price.　　In addition to the cost of compensation in the sale of land, a considerable part of the public service, but also inevitably some of the use of inefficient or not in accordance with the provisions of the reasonable use of the problem, such as the lack of adequate investment in the protection of housing is a prominent problem. If the current financial system is not perfected, local "land finance dependence" is still unavoidable.　　Moreover, even if the fiscal system is adjusted, there is a significant increase in local financial and financial resources, and without changing the de facto local ownership of today's state-owned land, local governments will still not be able to spend their money around them. Editor: Whether the city or the village, its land resources are limited, anticipates-style land finance certainly unfavorable to a city, a country's sustainable development, also sorry for future generations. The old town is often coveted for its prime location in the city and has been demolished or dismembered. How do you think you can reverse this situation? What the state should doand policy adjustments and arrangements?　　How to use the fiscal lever to curb the local government's impulse to sell land, so that the city function of the old town can be perfected without catastrophe? Zhiyong: If urban planning is done on the basis of full respect for public opinion, the likelihood of the destruction of the old City will be greatly reduced. What the state should do is to protect personal property rights effectively. The state can not just ask for land development, let the old city residents, especially ancestral old City to move.　　The State should introduce relevant systems or policies to prevent the "realization of public interest" as an excuse for the demolition of profit-making behavior. There have been two different views and practices on the transformation of the Old City. One is to keep the old town and build another new town. There are examples in practice, such as Dali, Yunnan. But in reality more is another way, dismantle Old City, build new town.　　The cost of such practices is relatively low, but it also brings a lot of negative effects, especially the practice of not respecting individual property rights, which is also detrimental to the further development of the market economy. We should establish a sound tax-sharing system, so that the local government has its authority (expenditure responsibility) corresponding to the financial and financial resources. In this way, local governments will greatly reduce the impulse to sell land.　　We should also improve the protection system of personal property rights, so that even if the local government has the impulse to sell land, it is difficult to savage demolition. Land finance is unsustainable. Local government should establish a sustainable local tax system with stable income.　　Like many countries in the world, the local finance is to a certain extent the land finance, but the land revenue should not be the income of sale, but the tax income related to the real estate. Editor: How to use land sales is one of the most concerned problems for people, especially those who are "reformed" and relocated. In recent years, the State Council and the Ministry of Finance have stipulated that the land transfer income should be applied to compensation, land development, agricultural expenditure, urban construction expenditure, and other expenses (including urban low-rent housing security expenditure, etc.). But in reality, it's hard for people to know how the local government's income is used. How to protect the interests of citizens from the system?　　How to protect citizens ' right to know and supervise the use of land transfer money? Zhiyong: Theoretically, as long as the "transformation" of households, relocated received reasonable compensation, they can not be particularly concerned about the "land sales" of the place of income. But in reality, the price of compensation is often unreasonable. Reasonable compensation price (market price) and the actual compensation price difference, the formation of local governments and developers of excess income.　　In addition, the relocation is often carried out in the name of the public interest, they are concerned about the whereabouts of the proceeds of land sales is very normal. In fact, the average citizen has good reason to pay attention to this kind of land sale income of the government. This income, regardless of the way it is formed, constitutes public revenue. It is imperative to further implement the Government Information Disclosure Ordinance and to disclose government information as much as possible. By perfecting the government's full-caliber budget (the comprehensive budget), it is possible to disclose all government revenue and expenditure information without compromising.　　Under the sun, irregularities will be reduced. Safeguarding citizens ' interests from the system, it is still essential to implement the law on property rights and protect the basic rights and interests of citizens.