Xuren The riddle of 2.9 trillion of land finance

Li Xiaoye in answer to "the first financial daily" question, Xuren said that the "extrabudgetary income" will be abolished the subject, to ensure that the land transfer revenue and expenditure into the local government budget, and a wide range of new financial resources 2.9 trillion!　　Last year, the National land transfer income reached an unprecedented height, close to the local revenue of One-third, "land finance" has become increasingly fierce, the way out? Yesterday afternoon, "financial policy and related issues" press conference, Finance Minister Xuren responded to the "First financial daily" reporter on "Land Finance" questions, explained the huge land transfer income of the cause and composition, and said that the future financial system reform will be abolished "extrabudgetary income" this subject,　　To ensure that the land transfer revenue and expenditure into the local government budget, in strict accordance with the provisions of reasonable use. "Land Finance" is the "anticipates" in the cause of the huge land transfer, and its drawbacks have already appeared. In the 2001, the country's land sales accounted for only 16.6% of the local revenue (at the time, part of the land income was extrabudgetary income).　　By 2010, the figure reached 2.9397 trillion yuan, a ratio of more than 30% per cent, up 106.2% from the previous year. Xuren said that the rapid growth of land transfer is mainly due to a number of reasons: first, in the context of urbanization, industrialization, the land administration approved a substantial increase in the amount of soil supply, last year, the total land supply reached 428,200 hectares, an increase of 34.2% per cent.　　This is a fundamental reason for the increase in income from land transfer last year.　　In addition, the increase in the proportion of land transfer, the increase in the national land price, tax collection and management policies, land revenue and other factors, has greatly facilitated the expropriation of land transfer. Study 2.9 trillion "land finance" composition, will find that the eastern provinces and cities accounted for a large half. Xuren Frankly, this reflects the structural problem, in the total land income last year, two-thirds in the eastern eight or nine provinces and cities, compared to the Midwest, these provinces and cities tend to be stronger fiscal strength, the public budget funds abundant areas, but it has more land income.　　This is because these local real estate market, the level of economic development, the degree of land scarcity determines the price higher. He also mentioned that the land paid transfer is based on the national Land Law and other relevant laws and regulations of the collection, all to be included in the capital budget management, the local government can not take land income to make up for the general expenditure of public finance. According to the provisions, the land paid to transfer income is earmarked, in addition to land expropriation and demolition, the development and other cost-saving, the need for special use for land construction, water conservancy construction, for the protection of housing, urban and rural infrastructure, including roads, urban greening, rural production and other aspects of infrastructure construction.　　In fact, some state-owned enterprises in the bankruptcy after the occupation of land transfer money for the Enterprise workers Laid-off resettlement and other aspects of expenditure, this is not allowed. Kang, director of the Finance Science Institute of the Ministry of Finance of the National Political Consultative Committee of the New financial resourcesIt has been mentioned that local governments need fiscal revenue to do a lot of things, in addition to leasehold can circumvent the budget law, there are a variety of circumvent the budget law of the invisible, irregular liabilities, all contain great public risks. On this point, Xuren said: "The Ministry of Finance and other departments will further actively take measures to effectively strengthen the state-owned land transfer revenue and expenditure management, to ensure that all land transfer revenue and expenditure into the local government budget, in strict accordance with the provisions of reasonable use." Xuren stressed that the next step will be to strengthen the supervision and inspection of the implementation of the policy, to ensure that the land transfer revenue safe, standardized and effective use.　　In particular, according to the current laws and regulations, land transfer of net income, the first to be more used for farmland and water conservancy construction, for the protection of housing construction.　　Liang Tiyang, a researcher at the Institute of Geographical Science and resources of the Chinese Academy of Sciences, said that "land finance" is an overdraft of the rights and interests of children, to solve the "land finance" situation to rely on opening up new sources of revenue. For now, Liang Tiyang's proposals are becoming a reality. Xuren revealed that the Ministry of Finance is brewing to expand the scope of VAT, the corresponding reduction of business tax, adjust the scope of excise tax and tax rates, improve the industrial structure and the development of the service industry tax policy. We should gradually establish and improve the individual income tax system combined with the classification, and further improve the enterprise income tax reform. Further promote the reform of resource tax, study the levy of environmental protection tax and promote the reform of real estate tax. The local tax system should be perfected gradually, under the precondition of Central Unified tax administration, the provincial government should be endowed with the right of taxation management. We should continue to promote tax reform, clean up and standardize various fees and charges, and gradually increase the proportion of revenue in revenue.