The Public Finance Coordination Mechanism in the Construction of Smart Cities in the Guangdong-Hong Kong-Macau Great Bay Area

The Guangdong-Hong Kong-Macau Greater Bay Area (GBA) achieves the goal of integration and sustainable development of all regions through the creation of comprehensive smart cities. Leveraging the smart city effect plays a crucial role in the development of the GBA. However, the key to creating a good smart city in each region lies in whether the regions public finance system can be effectively utilised to achieve the fundamental objective of promoting smart city development through the key role of digital technology for governance, infrastructure and innovation. This study examines findings on local development disparities in the GBA and their impact on infrastructure, public services, and industrial innovation, and proposes measures to improve cross-regional fiscal coordination. The measures are developed through case studies and policy comparisons, with a focus on Shenzhens intelligent transport. Recommendations include the establishment of a joint municipal financing mechanism, the promotion of inter-city cooperation, and the enhancement of private sector participation through a public-private partnership model. The paper highlights the importance of establishing institutionalised fiscal relations to ensure the building of equitable and efficient smart cities in the GBA.