subject: Central policy lead to land-dependent local fiscal stress? - Central policy, local governments, land for a living - Construction Machinery Industry [print this page] Recently, regulation and control policy for the frequency of the real estate industry, we are concerned about the industry itself changes, but also concerned about the long-standing reliance on "land for a living," the local government. Now, they are faced with dilemma. Bear not only promote the local finance health care reform, education, and so a lot of capital investment projects, and a large number of 4 trillion of investment in local projects under the follow-up projects will be completed in the next two years. This means that the scale of investment in the next two years will be more money may be needed more. Source of funding for local projects than central government expenditure, local governments rely on bank loans and matching funds. Access to these funds, the basic operations must rely on government land to achieve. If so, will now control the local real estate in general? Local money tight to what extent? This end, we published these reports. Hebei Province's implementation of central policies to increase the need for new spending 73.9 billion yuan, but after repeated measurement, in Hebei Province this year, only 9.0 billion new money available. The difference between 600 billion to Hebei Province on the central policy can not guarantee in place. Not only Hebei province, many provinces are facing similar problems. Recently, the National Secretary provincial Department of Finance at a national conference had called for the establishment of a new mechanism to require policies issued before the central ministries, the Ministry of Finance issued the necessary policy responses around the new capital investment and Counting financial resources, and control all policy total funds required, "Comprehensive evaluate the local financial ability to do these things, the Ministry of Finance should have the power to examine this." Short of money "Where too short of money now, and this 73.9 billion in construction funds, including affordable housing, schools and the renovation of dilapidated buildings funding mechanism to ensure funding of Politics and Law of livelihood of the expenditure of funds, etc., can involve local governments in the implementation of the prestige of ordinary people's hearts. "financial system in Hebei Province, an official said. Qinghai Province in the preparation of the budget by 2010, when about 10.3 billion budget revenues, expenditures must be charged to around 11 billion. In order for the provincial People's Congress adopted the budget for the technical treatment. Income-based, so a balanced budget, but there Jige Yi expenditure in the financial sector appears to be certain to occur. Qinghai this case report in the national financial work conference and get a lot of cities resonance. Hebei and Qinghai than this book difficulties, lack of money in some places actually live life. County in the west end of last year not to issue authorities face difficulties in Salary, at the last minute had to credit 30 million payroll. Government loans without sufficient reason, had to persuade some workers and cadres to individual loans, each of 100,000 yuan. Many workers do not prefer, because loans are secured by their salaries, "the bank card number to our wages are credited to go." An employee frustration. But the last few days from the payment of wages, we still have to sign the loan contract, so the county cadres and workers to get wages on time. The county to implement political and legal, education, health, housing and other policies to protect and even spent a superior officer has been allocated funds in full, to arrange matching funds. Some project funds have been diverted to other related requirements, not uncommon here. Although the Ministry of Finance started a pilot county to ask the provinces of basic financial protection mechanism for the primary financial "guarantee wages, operation, and people's livelihood" to provide basic financial security, and gradually digest the basic financial shortfall at the county level, but the pilot did not roll out, a variety of matching funds the county is still a lot of frustration.
Central policy lead to land-dependent local fiscal stress? - Central policy, local governments, land for a living - Construction Machinery Industry
