The total land transaction fees collected by local governments in 2013 soared to an all-time high of 3.91 trillion yuan ($630 billion), up 1.2 trillion yuan ($193 billion) from the year earlier period, according to new figures from the Ministry of Finance (MOF).
Transaction fees for the use of state-owned land, an important gauge of local governments' dependence on land finance, reached 4.13 trillion yuan ($666 billion), an increase of 45 percent. MOF said 35 percent of all local revenues were generated by fees associated with the right to use state-owned land.
Official statistics show local governments' land transaction revenues reached 3.1 trillion yuan ($500 billion) in 2011 and dropped to 2.7 trillion yuan ($435 billion) in 2012.
The MOF attributed the soaring revenues to the price increase for land transactions, which was in lockstep with local governments' increased dependence on fiscal income from the selling of land use rights. |