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Background: New Urbanization is a major strategic decision for building socialism with Chinese characteristics, which has a profound significance for the comprehensive moves to finish building a moderately prosperous society, accelerating the process of socialist modernization, and other causes. The development of new urbanization requires the support of relevant mechanism and system, according to documents released by the State Council, promoting the innovation of urbanization system is a crucial component to the cause of new urbanization in 2015. Methods: Based on the way urbanization system is stipulated in The National New Urbanization Plan (2014-2020), we analyze how the fund security mechanism promotes the innovation of urbanization system in Western China from the perspective of public finance and taxation. Results: Urbanization and fund security are related, public funding is important to urbanization and there exists multiple shortcomings in the process of urbanization in terms of public funding and taxation. Conclusions: Urbanization system can be promoted by improving the institution of fiscal transfer payment and local tax system

Promoting the innovation of urbanization system in Western China from the perspective of public finance and taxation