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The impact of tax collection and administration system reform on local government debt: A perspective based on digital inclusive finance

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  • Wang, ShiTao
  • Li, Jing

Abstract

This study investigates the impact of tax collection and administration system reforms and digital inclusive finance on local government debt. Utilizing provincial panel data from 2011 to 2023, an empirical model was constructed to examine how tax collection and administration system reforms and digital inclusive finance affect the debt levels of local governments. The findings indicate that reforms in the tax collection and administration system significantly reduce local government debt levels. Additionally, the development of digital inclusive finance also significantly decreases local government debt. Further analysis of moderating effects reveals that digital inclusive finance plays a significant positive moderating role in the impact of tax collection and administration system reforms on local government debt, with the strongest effect observed in the western region.

Suggested Citation

  • Wang, ShiTao & Li, Jing, 2025. "The impact of tax collection and administration system reform on local government debt: A perspective based on digital inclusive finance," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325013443
    DOI: 10.1016/j.frl.2025.108087
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