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Central Issues in Reform of Urbanization Financing

In: The New Cycle and New Finance in China

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  • Shusong Ba

Abstract

Urbanization financing in China is characterized with such problems as overdependence on land transfer receipts, inadequate supervision on local government debt and inadequate restriction on local government expenditure. A package of reform should be implemented in urbanization financing, to eliminate inequality of public service accessing between permanent urban residents and transient population. The reform should also be aimed at building infrastructure and providing public service for a new urban population of 300 million in 20 years to come. It involves establishing a system that makes local government’s power match its spending responsibilities, rationalizing revenue division between central and local government, increasing local tax revenue, adjusting land finance policy, promoting the investment of the private sector and developing stable and sustainable debt financing.

Suggested Citation

  • Shusong Ba, 2022. "Central Issues in Reform of Urbanization Financing," Springer Books, in: The New Cycle and New Finance in China, chapter 0, pages 279-284, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-8209-4_35
    DOI: 10.1007/978-981-16-8209-4_35
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