DOI: 10.19830/j.upi.2022.743
Issues of China’s Urban Finance from the Perspective of Urban Planning

He Yang, Li Wenjing

Keywords: Urban Planning; Municipal Finance; Policy Coordination; Infrastructure Financing; Sustainability

Abstract:

Cities rely on rational planning strategies to develop over time. A rational urban planning must not only meet the needs of manufacturing and daily lives, but also depend on sufficient financial support to implement it. In the process of rapid urbanization in China, the public finance system at the level of urbanized areas has been absent. There is a certain degree of disconnection between urban finance and urban planning. Some irrational phenomena such as “finance for planning” and “planning for finance”have emerged. The former leads to the increased financial pressure on local governments and the tendency of excessive borrowing. The latter would increase land finance revenues for local governments, but might cause waste of resources and a large number of “unfinished” projects due to the repetitive planning and inefficient urban expansion. To address the above issues, it is necessary for urban finance and urban planning to coordinate with each other. Urban planners should take financial affordability into consideration when proposing urban planning strategies. Meanwhile, urban finance policies are expected to be continuously optimized to provide sustainable financial support for the future urban planning.


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