Analysis of Influencing Factors of Fujian Province's Fiscal Revenue

Abstract

Fiscal revenue serves as the core financial source for governments to perform their functions, provide public services (such as education, healthcare, and national defense), and construct infrastructure, ensuring the smooth operation of society and meeting people's livelihood needs. Meanwhile, it achieves macroeconomic regulation through means like tax adjustments and transfer payments, promoting social equity, stabilizing economic fluctuations, and driving sustainable development. To analyze the factors affecting Fujian Province's fiscal revenue, this study selects relevant influencing factors from 2015 to 2024 for statistical analysis. First, it uses Lasso to select key variables, and then applies the grey prediction model to forecast Fujian's fiscal revenue for the next two years.