Researching On Fiscal Decentralization System During Transitional Period

Although different transitional countries have different characteristics, inevitably, they all face the decentralization problem between the central government and the local governments. China has experienced many fiscal decentralization reforms before and after the reforming and opening up. After the tax decentralization reform in 1994, the central government further defined the relationship between the central government and the local governments, which leads to the direction of gaining fiscal power according to the public function of different governments from the single mode of giving power and benefits in the past, the fiscal system was moved forward a big pace to the public fiscal system. But no matter the tax decentralization or the compound budget system, they are not perfect, and still have some problems, such as there are insufficient stimulus to the local governments, and the informal transfer disbursement behavior etc. the modern fiscal and taxation system just has its primary outline, and compare to the modern fiscal system, which is suit to the marketing economy, there is still a long way to go. So, it's very important to do some research on the fiscal decentralization system during the transitional period systematically.This dissertation uses the reference from other country's fiscal decentralization reform, integrates Chinese fiscal decentralization process, by using the theories concerning the modern economics, including win and gain theory, information economics, new system economics, transitional economics etc, which are the main analyses tools, to build up some concise mathematics' models, by using Chinese specific data to verify the models, and draw a serial of conclusions. This dissertation aims at the current Chinese fiscal system, bases on a serial of theory analyses and the conclusion verified by the models, proposes the possible ways of Chinese further fiscal decentralization system.After the preference, in the second chapter of this dissertation, it analyzes the practice of other transitional countries fiscal decentralization, pointing out the problems are, A. the stimulation is not enough, B. the gap of the local budget is large.So, we can learn from other countries fiscal decentralization experience, A. The clearly definition of power and responsibility and the legalization of the fiscal decentralization are the right direction of Chinese fiscal decentralization should go to. B. To stimulate the local governments is an important factor to ensure the fiscal decentralization system runs efficiently. C. The transfer disbursement system should be the unity of flexibility and formality.In chapter three, it looks back the whole history of Chinese fiscal decentralization and points out the characteristics and problems caused by tax decentralization. Before 1994, the fiscal decentralization is a kind of administration decentralization, which leads to the power and disbursement responsibility shift to the local governments little by little. After 1994, the fiscal decentralization is a kind of economic decentralization, which leads to the fiscal power centralize to the central government, limits the ability of the local governments to increase their revenue, and causes the fiscal gap among the local governments increases, and negatively affects the local economy.In the chapter four, it analyzes the stimulating compatible effect and stimulating distorting effect during the transitional period caused by fiscal decentralization by using a serial of mathematics model. The writer uses a model based on the moral risk model which is set by Yingyi Qian and Roland, by using Chinese datum to verify, comes up with that in the primary transition period, the fiscal decentralization system does good to relieve the information and supervision problem of in the public economic administration, further in favor of increasing the public economic efficiency. The tax decentralization in 1994 has some obvious characteristics of fiscal centralization, which causes stimulating distortion effect, and al...