One of the main reasons for the tight local finances is that the local government is overly dependent on land policy and ignores the rationality of the fiscal structure. The problems caused by over-reliance on land finance are manifold. First of all, due to the scarcity of land resources in some cities, land premiums are serious and housing prices are high. In this case, a large amount of capital flows to the real estate industry, resulting in the inability of funds to flow into other real economies, further exacerbating the imbalance in the economic structure. However, some cities focus on buildings and tourism that represent the image of the city, and ignore the development of other industries, resulting in an imbalance between fiscal revenue and expenditure. In addition, the lack of planning of the local government on the financial structure also restricts the development of the local economy, making the local finance not only spend money lavishly, but also unable to create more fiscal revenue.
In order to improve this situation, local governments need to get rid of excessive dependence on land policies, strengthen the management of land use planning and capital budgets, and avoid the problems of land premiums and housing prices. At the same time, it is necessary to pay more attention to other industrial projects, attract more investment, promote the diversified development of industries, create more employment opportunities, and provide a better employment environment for the people. In addition, local governments should also strengthen the planning of the fiscal structure to ensure the balance of fiscal revenue and expenditure, and prevent excessive financial investment and debt risks.
Another common phenomenon that has led to tight local finances is the lack of effective supervision and control of fund management. In some places, there have been a number of so-called "face-saving projects" that are costly but have not brought substantial benefits to the local economy. On the contrary, they simply waste fiscal funds and put a heavy burden on local finances. In addition, in order to balance fiscal revenue and expenditure, some localities have adopted the strategy of "tearing down the east wall and making up the west wall", which will only wipe out the vitality of economic development and restrict the further development of the economy. In addition, excessive borrowing is also an important reason for the difficulty of local financial operation, once the financial controllability is lost, the debt risk of the local government will be greatly increased.
In order to solve this problem, local governments need to strengthen the supervision and control of the use of funds to avoid wasting financial funds. At the same time, it is necessary to optimize the structure of fiscal expenditure, allocate funds to various fields more rationally, and ensure that the benefits of fiscal expenditure are maximized. In addition, local governments also need to strengthen the management and control of local debts to avoid excessive debt scale and increase financial risks. Only by strengthening the management and control of funds can we better protect the stable operation of local finances.
In order to get rid of the dilemma of tight local finances, local governments should adhere to the concept of sustainable development and walk on the road of "sustainable" development. Sustainable development is an important direction and goal, which is of great significance for the long-term development of the local economy. Under the guidance of sustainable development, local governments should adjust their economic development ideas and look to the future.
First of all, local governments should strengthen infrastructure construction and create a good environment to attract more investment. Only the continuous improvement of the city's infrastructure can attract more investment and promote the development of the local economy.
Secondly, the local government should also promote the diversified development of industries, tap and support emerging industries, and provide rich and diverse growth points for the local economy. Diversified industrial development can improve the intrinsic vitality of the market, stimulate people's enthusiasm for consumption, and thus promote sustained economic growth.
Finally, it is necessary to establish a sound financial system and risk management mechanism, strengthen financial planning and supervision, and ensure the balance and sustainable development of fiscal revenue and expenditure.
The general phenomenon of tight local finances is the result of the over-reliance on land policy and the neglect of the rationality of the fiscal structure. Over-reliance on land policy has led to an imbalance in the economic structure, resulting in the concentration of funds in the real estate sector and the underdevelopment of other industriesThe lack of supervision and control in the management of funds has led to a waste of financial funds and an increase in the risk of debt. These problems not only seriously affect the development of the local economy, but also directly affect the production and life of the people. In order to change this situation, local governments need to change their thinking about economic development, strengthen infrastructure construction and attract investment, promote industrial diversification, and provide more and better employment environments. At the same time, it is necessary to strengthen the supervision and control of land policy and fund management to avoid the waste of financial funds and the risk of debt. Only by achieving sustainable development can the local economy get out of its predicament and provide better production and living conditions for the people.