The local finances are in an emergency, and the cows, horses, snakes, and gods have quietly appeared, or have a far-reaching impact on the people!
In 2023, with the slowdown of economic development and the recession of the real estate market, the pressure on local finances is increasing, and some places** are already facing the dilemma of shortage of funds.
Now there are signs that the local finances are really running out of money.
This is not only a financial issue, but also has a significant impact on production and the lives of residents. Here, the author analyzes the impact of local fiscal constraints from four aspects.
First of all, the constraints on local finances will seriously affect the production and livelihood of the masses.
Due to financial pressures, investment in infrastructure construction may be reduced, resulting in the inability of some important projects and the postponement of infrastructure construction, affecting production and people's lives.
On the other hand, budget constraints will also lead to a reduction in investment in areas of people's livelihood, such as health care, education, and public transportation, resulting in an imbalance of social resources and affecting social equity. All this will have a direct impact on the production and living standards of the broad masses of the people.
The bus stop incident that occurred in 2023 is an example of this.
The operation of public transport is mainly dependent on state subsidies and cannot rely on ticketing to make a profit.
When there is no money, the bus company faces serious operational problems.
It can be said that this kind of financial difficulties do not exist only in one province, but basically exist in many provinces and cities across the country.
Second, local financial constraints have the potential to lead to major social conflicts.
When local finances lack sufficient funds to solve problems of general concern to the masses, the discontent of the masses increases. Some important social issues, such as employment, medical care, education, and so on, are difficult to properly solve, and it is easy to arouse public anger and lead to the intensification of social contradictions.
Once the conflict escalates, it will not only damage the reputation of the local **, but also cause social unrest, posing a major threat to social stability.
In addition, in order to make money, some regions and departments are also doing everything, such as the sky-high fines related to food safety related to market supervision mentioned earlier.
Although the sanctions were carried out in accordance with laws and regulations, the social impact of the sanctions was obviously too heavy, and the purpose of educating the parties and warning the society was lost, and they were reduced to fines and sanctions.
As a result, the court decided to cancel the fine.
Third, local fiscal constraints may lead to the loss of state-owned assets.
Due to a shortage of funds, local governments may be forced to dispose of or dispose of public assets to make up for the fiscal shortfall. Improper asset disposal or ** can easily lead to the loss of state-owned assets, which will have a long-term negative impact on local finance and economic development.
The loss of state-owned assets not only weakens the financial capacity of the local government, but also causes the loss of resources, which weakens the endogenous driving force of economic development to a certain extent.
For example, the right to set up stalls and the right to operate tourist buses in the Leshan Giant Buddha Scenic Area in Sichuan.
A private company bought the right to operate for 30 years for $1.7 billion**. In the short term, it solves the problem of funding, but in the long term, it still causes the loss of state assets.
Fourth, local financial constraints will bring huge potential problems to those who come after them.
In the face of financial difficulties, in order to solve the current problems, some irresponsible short-sighted measures may be adopted, such as excessive debt pressure, disproportionate financial subsidies, etc., these measures are only superficial and cannot fundamentally solve the financial problems. These measures may leave sequelae, bring greater pressure and burden to future generations, and bring unpredictable hidden dangers to the future.
In order to solve some financial crises, some localities have sold land, sold resources, and even mortgaged some state-owned assets, and sold them whenever they can, but this practice can only play an emergency role and cannot fundamentally solve the problem of financial constraints.
In short, the problem of local financial constraints cannot be ignored.
This is not only an economic issue, but will also have a major impact on the production and livelihood of the broad masses of the people. The lack of local financial resources will not only seriously affect the production and livelihood of the masses, but will also easily lead to the intensification of social contradictions and the loss of state-owned assets, and will also bring hidden dangers to those who come after them.
Therefore, while fully aware of the seriousness of local financial problems, we should also seek effective ways to resolve local financial difficulties through various channels and means, so as to ensure the healthy development of the social economy and the happiness and well-being of the people.
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