The strain on local finances may be far greater than you think, and we really don t have any money

Mondo Social Updated on 2024-01-31

Money is hard to earn, is hard to eat!

It's a very ugly statement, but it's not wrong at all.

Although China's per capita disposable income is rising, this is only an average.

In fact, there are a large number of migrant workers who have worked in the same unit for several years without a penny increase in wages.

Of course, it is not only the common people who have suffered the same thing, but also the local finances.

According to data released by the Ministry of Finance, although tax revenue, which is the backbone of the fiscal sector, has increased year-on-year, the situation is not perfect.

Specifically, in November, more than half of the 13 major tax items announced by the Ministry of Finance were year-on-year.

These include consumption tax and personal income tax, which are closest to the common people, as well as corporate income tax.

Obviously, the current situation has been caused by the combination of a poor employment environment, unstable incomes, limited consumption, and declining corporate revenues.

In addition, the cooling of the real estate market has also had an extremely huge impact on local finances.

In 2021, the income from the transfer of state-owned land use rights in China will be about 87 trillion.

In 2022, it will decrease by 233%, only about 67 trillion.

According to the latest data from the Ministry of Finance, in the first 11 months of this year, the income from the transfer of land use rights was 42 trillion, down 17 percent year-on-year9%。

In the course of China's development in recent decades, local finance has been highly dependent on land finance.

For example, in 2021, land finance accounted for more than 50% or even 60% of the fiscal revenue of Shandong, Jiangsu, Zhejiang and other provinces.

For example, in 2019, Qingdao's dependence on land revenue was as high as 83%, although it has continued to decline in recent years, it is still not low.

In land finance, the transfer of land use rights accounts for the majority.

Therefore, the income from the transfer of land use rights has continued to decline, and the magnitude is still very large, and local finances will naturally be tight.

For the current situation of continuous decline in land use right transfer income, ** definitely does not want it to continue, but there is no good solution.

In the past, real estate developers expanded wildly, and the whole people speculated on houses, which eventually led to a spike in housing prices.

This unhealthy development model is finally beginning to show its negative effects.

Looking at the current market, people dare not buy houses, developers dare not take land easily, and the land is unsold or cannot be sold well.

This is a big trend, in fact, it is very difficult to change.

In addition, while fiscal revenues are tight, fiscal expenditures have only increased.

According to the data released by the Ministry of Finance, in November, only one of the 10 major fiscal expenditure items decreased year-on-year, and the rest all increased, with a magnitude of 1Between 4% and 9%.

Among them, social security and employment expenditures and education expenditures increased the most, at 9% and 5%, respectively7%。

Finally, an overall figure1 November, local fiscal revenue 10844 trillion, local fiscal expenditure, 2051 trillion.

The two-fold difference is unexpected, but in some cities, the difference is even greater.

For example, Harbin, which has recently been on the hot search because of "refunds", will have a fiscal revenue of 262 in 2022200 million, but fiscal expenditure has nearly 6 times to more than 154.5 billion.

This data is simply explosive!

To sum up, local finances are definitely not "rich and oily".

The vast majority of cities are probably trying their best to ensure the basic welfare of their residents while tying their belts.

Seniors over 60 years old can ride the bus for free, which is the most basic welfare package.

Do you really think that the bus company is kind, in fact, it is all financed, otherwise why should the driver keep emphasizing the elderly to swipe the card?

In addition, there are nine years of compulsory education, additional maternity subsidies, etc., and the pressure is not ordinary.

For the current situation of financial constraints, ** is not doing nothing.

For example, this year, it has been reported that non-staff personnel have been cleaned up in various places, and this is not a way to save financial expenditures

All in all, there is a great mismatch between fiscal revenues and fiscal payments, and local finances are more tight than we imagined.

Don't blame the welfare benefits for not being good, it's really ** can't make ends meet, and you can't take out so much money!

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