Core Viewpoint - China's local fiscal operations are undergoing significant transformation and pressure, necessitating reforms to establish a sustainable fiscal mechanism that supports healthy economic development [1][4]. Group 1: Reasons for Local Fiscal Dilemmas - The structural contradictions during the economic transition period are limiting the foundation for fiscal revenue growth, with traditional industries slowing down and new industries not yet contributing significantly to tax revenue [2]. - The traditional tax collection model is inadequate for covering new economic activities, leading to risks of tax revenue loss, especially in regions heavily reliant on specific industries [2][3]. - The fiscal system below the provincial level is not fully reformed, affecting the balance of revenue and expenditure, with rigid spending structures and insufficient budget performance management [3]. Group 2: Strategies to Enhance Fiscal Sustainability - A sustainable local fiscal mechanism should focus on cultivating endogenous economic growth, optimizing institutional environments, and innovating policy tools while revitalizing existing assets and improving tax collection [4]. - Cultivating high-quality tax sources is essential for solidifying the micro-foundation of fiscal revenue, shifting from merely attracting investment to nurturing and strengthening local businesses [5][6]. - Gradual reforms of the fiscal system below the provincial level are necessary, including optimizing budget management and enhancing the efficiency of fiscal resource allocation [7]. Group 3: Innovative Policy Tools and Resource Management - Local governments should innovate policy tools to expand fiscal revenue sources, focusing on long-term institutional advantages rather than solely on transfer payments [8]. - Effective mobilization of social capital through innovative financing models, such as public-private partnerships (PPP), is crucial for funding key industries and technological innovation [8][9]. - Strengthening the management of fiscal resources and tax collection efficiency is vital, including the establishment of a modern tax collection system that utilizes data sharing and intelligent analysis to ensure comprehensive tax collection [9].

Core Viewpoint - China's local fiscal operations are undergoing a profound transformation and facing significant pressure due to complex external environments, economic slowdown, and deep adjustments in the real estate market, necessitating reforms to establish a sustainable local fiscal mechanism to support healthy economic development [1][4]. Group 1: Reasons for Local Fiscal Challenges - The structural contradictions during the economic transition period are limiting the foundation for fiscal revenue growth, with traditional industries slowing down and new industries not yet sufficiently developed [6]. - The traditional tax collection system struggles to effectively cover new economic activities, leading to risks of tax revenue loss, especially in regions overly reliant on specific industries [6]. - The fiscal system below the provincial level is not fully reformed, affecting revenue and expenditure balance, with rigid expenditure structures and inadequate performance management mechanisms [7]. Group 2: Strategies to Enhance Fiscal Sustainability - Cultivating high-quality tax sources is essential, focusing on creating a vibrant and diverse tax base, shifting from "attracting investment" to "nurturing businesses" [11]. - Gradually advancing fiscal reforms at the provincial level is crucial, including optimizing budget management and establishing a long-term mechanism for government debt management [12]. - Innovating policy tools to expand fiscal revenue sources, such as shifting focus from single transfer payments to major reform pilot projects and strategic platforms [13][14]. Group 3: Resource Coordination and Tax Administration Efficiency - Fully activating existing asset resources to enhance value and revenue, employing methods like public leasing and asset disposal [15]. - Standardizing government revenue management to reduce reliance on non-tax income and improve the regulatory framework for tax incentives [15]. - Building a modern tax administration system using data-driven approaches to ensure comprehensive tax collection and address emerging tax risks [15].