The Role of Public Finance in Pushing Forward the New Type of Urbanization

Abstract

City is an important spatial carrier for economic activities. In the past more than 30 years, urbanization has greatly promoted China’s economic development. It is certain that urbanization is and will stay the main force for China’s economic growth in the next period of time. It was this realization that the Chinese central government put forward the national strategy of new type urbanization in the 2012 Central CPC Economic Working Conference by assessing the situation. Top leaders in the central government emphasized that China should pursue the stable economic growth, actively and prudently promote the new type of urbanization, focusing on improving the quality of urbanization (Xinhua Net, 2013). Thereafter, along with Premier Keqiang Li’s further interpretation of and emphasis on the new type of urbanization, the new type of urbanization has been rapidly becoming an important part of China’s national strategy. All provinces, municipalities, counties, and districts have launched a new wave of urbanization. Undoubtedly, the new type of urbanization is the key point of work in current and future China, and the role of public finance is and would remain very important in the implementation of the new type of urbanization strategy. Urbanization needs urban public infrastructure investment and construction, needs perfect public service system, it is the basic guarantee for the concentration of economy and population in the process of urbanization, and public finance is responsible for this area. Population concentration and industrial agglomeration is essential for the urbanization, only the better combination of industries and cities can form the basic space for coordinated development of production and life.