DOI: 10.19830/j.upi.2022.748
Exploring the Relationships Between Urban Planning and Municipal Finance

Liu Zhi

Keywords: Urban Planning; Municipal Finance; Borrowing; Mid-term Construction and Financial Planning; Property Tax

Abstract:

This paper raises a key question which has long been neglected by the urban planning profession: should urban planning take into consideration of municipal finance capacity? This paper elaborates a simple theoretical framework for the linkages among urban planning, municipal financing, and borrowing, and illustrates these linkages with relevant international experiences. Then the paper discusses the causes and consequences of weak linkages between the practices of urban planning and municipal financing in the Chinese municipalities. Finally, in the context of high-quality urban development, the paper makes several recommendations for strengthening the working linkages between urban planning and municipal financing. These include orienting the urban planning perspectives to more fiscal realism, adopting a mid-term construction and financial planning practice and an urban infrastructure asset management system, continuing the property tax and land concession reform, and strengthening the teaching of municipal finance in the urban planning education programs.


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