Local Officials Say Land Sales Were Forced Out.

Local finance such as roller coaster, just concluded last year's fiscal revenue increased by two or three, in January this year, many provinces and cities have negative growth.

Reporters learned that Beijing, Shanghai, Chongqing, the three municipalities of the total caliber of fiscal revenue has been negative growth, and Guangzhou, such as the first tier cities also did not escape the doom.

Specifically, the growth of general budgetary revenue in Shanghai and Chongqing is positive, but once the income of land pfer is included, its revenue will become negative growth, because the land revenue of both places has decreased by more than 60%.

"From the early 90s of last century to the present, many cities in China depend on whether there is real estate or not."

Yang Zhiyong, director of the Financial Research Office of the finance and Trade Institute of the Chinese Academy of Social Sciences, said that the local government's reliance on land revenue should be cut off. There is no better way to adjust the central and local income distribution system at the present stage.

Reporters learned that in January, the top tier cities in Beijing, Shanghai, Chongqing and Guangzhou were at the end of the list of financial revenue, and there has been a rare negative growth in recent years, of which Beijing decreased by 10% compared with the same period last year, Chongqing dropped by 16%, and Shanghai dropped by 7.4%.

The real estate in these cities was the most active and the highest price in the whole country, and the land pfer income was the largest. In 2011, the land revenue of three cities was over 100 billion yuan.

But the data released by the China Index Research Institute showed that in January, the income of land leasing in 300 cities decreased by 67% compared with the same period, of which 74% of residential land was reduced.

For the local government, industrial land is a premium, and only commercial land based on housing is the source of land revenue. Therefore, real estate is a pillar for economic development in many places.

Chongqing's general budget revenue in January completed 14 billion 720 million yuan, an increase of 8.7%. If Chongqing's land revenue is taken into account, Chongqing's revenue will be 16% lower than that of the same period last year.

According to the analysis of tax revenue released by Chongqing in January, most of the tax revenue related to land and real estate had negative growth, such as the land value added tax fell by 14.3%, the urban land use tax decreased by 46.8%, the deed tax decreased by 20.3%, and the business tax increased by only 0.8%, due to the influence of construction industry and real estate industry.

Like Chongqing, tax revenues related to real estate and land have declined to varying degrees in various areas.

A tax official in Nanjing said that the real estate and land related taxes began to slow down from the second half of last year. However, due to the fact that taxes were lagged behind, the situation became more severe in January this year.

It is reported that in January, Nanjing's residential land paction was zero, which correspondingly affected its revenue and land revenue.

Real estate and land can change government revenue from "positive" to "negative".

In 2009, when the Chinese economy just recovered from the global economic crisis and the economic indicators were far from optimistic, the real estate industry suddenly rose.

According to the Ministry of finance, the growth of land value added tax, urban land use tax and business tax related to real estate and land in that year contributed nearly 40% to the total tax revenue growth, and increased the tax revenue growth of 9% in the same year to accomplish the target task.

In the same year, 6 trillion and 800 billion of the national revenue and 1 trillion and 400 billion of the land revenue were not counted in the general budgetary revenues, but they made great contributions to China's rapid economic crisis.

By 2010, the national land pfer income was 2 trillion and 900 billion, together with 8 trillion and 100 billion of the public revenue, bringing 10 trillion revenue to the Chinese government.

By the end of 2011, Shanghai University of Finance and Economics had held a training course for local financial officials. The training teacher asked the officials, "why does the local general budgetary revenue increase very high?"

At that time, both the students from the East and the West indicated that the revenue of the general budget could only cope with all kinds of government operating costs, social security and people's livelihood expenses. The funds needed for economic construction must rely on land revenue, and economic development is still one of the most important tasks of local governments.

A local government official told reporters that local development needs investment promotion, so that enterprises can settle in the local area, and the land is not free. Who will come to your place, and the places around you are free of charge. How do you compete?

However, the state does not allow free pfers, and local finance will need to be funded. This shortfall will need to be compensated by the pfer of commercial land.

For this reason, we need to find ways to develop land for sale, so as to promote local economic construction and development, and finally get satisfactory GDP and fiscal revenue growth.

In the past two years, Chongqing's fiscal revenue has achieved a "good start" with an increase of 60%. This year's situation is somewhat pessimistic. Chongqing officials say that the situation is grim and that the finance and taxation departments should achieve full receivables.

"Cities like Beijing and Shanghai have already gone ahead of construction and development, and now they need to digest and slow down. This is conducive to the pformation of the economic structure, that is, two steps forward."

Dong Guangqi, an expert consultant of Beijing Municipal People's government, and senior planner of Beijing urban planning and Design Institute, said.

Over the past few years, China's major cities accounted for more than 50% of their fixed assets investment in GDP. "Now is the time to repay debts, negative growth is not terrible, and healthy development is the goal."

Dong Chi.

However, the local government is not able to live up to it because new projects need to be started and old projects need to be renewed, all of which require capital injection from land.

In the past two months, some local governments have tentatively relaxed the restriction policy on real estate.

This year, Beijing has reduced the annual land pfer income budget to 90 billion, and Shanghai has reduced land revenue from 140 billion to 125 billion.

Yang Zhiyong believed that, in order to cut off the dependence of local governments on land revenue, there is no better way to adjust the central and local income distribution system at the present stage.

The local government officials said that the general budgetary revenues bear the cost of running the government, various social security, educational and affordable housing expenditure, but also some matching funds for the central government, and there is no surplus.

Where there is no support for land revenue, no construction or work can be carried out to promote economic development. "Selling land is really forced out."