Author(s)

Runyu Yang

Corresponding Author

Runyu Yang

Abstract

The inequality of regional development is an important challenge facing the world today, and fiscal policy is widely regarded as one of the effective tools to alleviate this inequality. The purpose of this study is to explore the role of fiscal policy in alleviating regional development inequality, and analyze its application and effect in different regions and situations. First of all, by explaining the concept and function of fiscal policy, we realize that fiscal policy can promote the rational allocation of resources and reduce the wealth gap between regions by adjusting taxes, expenditures and debts. Secondly, the paper analyzes the specific application and mechanism of tax policy, expenditure policy and debt policy in alleviating regional development inequality. However, the paper also found some challenges and obstacles that fiscal policy may face in the process of implementation, including inefficient policy implementation, corruption and abuse, and insufficient capacity of local governments. Finally, the paper puts forward some solutions and suggestions for improvement, including improving the efficiency and transparency of policy implementation, strengthening anti-corruption and supervision, and improving the management ability and sense of responsibility of local governments, so as to further play the role of fiscal policy in alleviating regional development inequality. To sum up, fiscal policy plays an important role in alleviating regional development inequality, but the government needs to further strengthen policy implementation and supervision to ensure its effective implementation and achieve better results.

Keywords

fiscal policy; regional development; inequality