95% of provincial capital, municipality directly under the central government on land compensation local government debt to break the high housing prices

Is the recent ten years intensified land finance. Some call it wine, some call it poison, in any case, land finance already like the snowball rolling rolling, the greater the roll from one hundred billion yuan for a few years ago to today's level of $3 trillion. In 2012, according to the ministry of land and resources public data shows the assignment of state-owned construction land area is 32. 280000 hectares, the assignment contract price ( The land transfer revenue) 2. 69 trillion yuan, compared to reduce 3 respectively. 3% and 14. 7%. Among them, the bidding, auction and listing-for-sale land area of 29. 300000 hectares, 90 of the total land area. 8%; The assignment contract price 2. 94 of 55 trillion yuan, accounting for assignment contract value. 8%. Shanghai e-house real estate research institute researcher YanYueJin told the China economic weekly ', local governments rely on land finance, one is to pay channel is too narrow, for part of the industrial economic development is not smooth, local fiscal revenue mechanism is not sound, the land resource become one last life-saving straw; Second, can be obtained from the current land income, due to the local government is the only provider of local land, so it is easy to get gold of land sell one's own things arts; Three is the present for the operation of local government debt is still not mature, easy to a loophole in the system of local government, which can realize to land revenue to pay for guarantee purpose. He told, a researcher at the Chinese Academy of Social Sciences industrial economy research institute of the China economic weekly, said more than half of a debt to repay by land finance, fully shows that the local government finances have been kidnapped, land finance and it clearly to the Chinese economy has brought a series of adverse effects. The most typical is the current house price bubble blew up, but no confidence to prick the bubble of local government, the housing prices f be higher. In recent years, the central repeatedly to control the housing market, even once to suppress the rising home prices in 2008, but at the end of 2008, many local governments quickly launched a series of rescue policy, analysts say, is because the land finance. YanYueJin points out that rely too much on land finance, no doubt, will bring a series of harm. First, the land caused the inert and corruption of local government finances. Without big cost, too dependent on land revenue, without seeking breakthrough in the field of other income. Second, the local government will himself into a dilemma. Rely on is to improve local government land revenue, but in the current control under the condition of house prices to suppress stakes, & other; Throughout your flour in bread &; Will increase the difficulty of the control house prices. Third, the risk of land finance breed, will eventually be passed on to the ordinary people. From the local government to developers, to ordinary people, in fact have interlocking interest relations. This mode, you will fat, cheap government, the developer, but bitter people.