There are many methods for the current local fiscal balance to balance revenue and expenditure gaps: the first is to use central net subsidies; the second is to increase local government general debt revenue; the third is to revitalize the stock funds; the fourth is to transfer funds from the budget system outside the general public budget; the fifth is to transfer funds from the budget stabilization fund.The true disclosure of local finances can make local governments obtain more central subsidy income, mainly in general transfer payments and special transfer payments. However, the central government’s tax refund and transfer payment fund allocation rules will not be changed, and local governments will mainly rely on their own efforts to solve problems.It can be expected that the issue of local government economic data, especially the falsification of fiscal revenue, will be the focus issue that China must face in the next few years. Falsification of local economic data not only affects the central government’ judgment of the macroeconomic situation, but also interferes with the regional allocation of resources. In order to achieve high-quality development, it is necessary to reveal the falsification of fiscal revenue.
