Challenges and Countermeasures for the Sustainable Development of Local Finance under the Impact of COVID-19

ABSTRACT

In recent years, the risks and challenges at home and abroad have increased significantly, and the downward pressure on the economy has increased, especially the implementation of larger-scale tax and fee cuts under the proactive fiscal policy, while the rigidity of local fiscal expenditure has not been reduced, and the sustainable development of local finance is facing greater challenges. In particular, the COVID-19 pandemic has had a serious impact on the already stressed local finance, which has led to the intensified contradiction between local fiscal revenue and expenditure. This paper analyzes the challenges to the sustainable development of local finance under the impact of COVID-19 from four angles the greater economic downward pressure combined with larger-scale tax and fee cuts, the fiscal relationship between the central and local governments, land finance, and transfer payment, then puts forward the corresponding policy recommendations. © 2021 Published by De Gruyter on behalf of the National Academy of Economic Strategy, Chinese Academy of Social Sciences.