Fiscal Decentralization In China's Market-oriented Reforms

Fiscal Decentralization, in its broad sense, should include economic decentralization, intergovernmental fiscal decentralization and intragovernmental fiscal decentralization. In western countries, components of fiscal decentralization are structured according to certain order. Yet, in our country, economic decentralization runs across intergovernmental fiscal decentralization and intragovernmental fiscal decentralization, which decides the formidableness and complexity in our reform of the fiscal decentralization. The reform of fiscal decentralization in our country has been carried forward in this way for about 20 years. How to appraise the effect of the reform is a critical issue because it concerns whether the reform needs to be carried out continuously as well as how to. The dissertation selects effect of the reform as its jumping-off point, and puts its focus on the effect produced by the reform of fiscal decentralization on the change of economic system in our country, economic growth, social justice, macroeconomic stabilization and government behavior etc. The dissertation attempts to make a comprehensive appraisal on the reform of fiscal decentralization in the past 20 years, and puts forward some suggestions on the further reform.Fiscal Decentralization can promote the development of society and economy. On the other hand, it can also obstruct the development of society and economy. Generally speaking, the reform of fiscal decentralization in our country promotes the process of market-oriented reform, accelerates economic growth, and does not have much negative effect on macroeconomic stabilization, but it does aggravate the economic gap between different areas. Given its influence on socioeconomic life, the reform of fiscal decentralization in our country should be carried on. The strategic option is that the reform be put forward in a coordinative manner, i. e. accelerate the step of economic decentralization and intragovernmental fiscal decentralization, but it is undesirable that the reform of intergovernmental fiscal decentralization alone be pushed forward. Its focal point should be on how to perfect the existing arrangements. In addition, some adjustments should be made on value orientation in the reform.Specific actions in the reform of fiscal decentralization should be within the framework of strategic option. The focal point of economic decentralization is to continue the state-owned enterprise reform and further government deregulation. In the reform of fiscal decentralization, we should make efforts to solve the problem of "vacancy" and "offside" and make sure that the reform is balanced in different areas and different industries. Existing arrangements of the reform should be stressed. First,off-budget revenues should be eliminated to eliminate confusion and disorder. Second, we can consult and introduce some viewpoints of fiscal federalism as well as the practice of the western developed countries, to make some adjustment on the division of taxation and government expenditure. Third, efficiency should not be emphasized excessively, as the problem of equality also needs proper solicitude. Lack of intragovernmental fiscal decentralization in our country also gives rise to some negative effect. The reform of intragovernmental fiscal decentralization in our country should take current government budget reform as an opportunity, make great earliest possible effort to build the framework of modern government budget system, but it relies greatly on the reform of political system.The dissertation is divided into eight chapters. The first chapter is the introductory part. In the second chapter, the dissertation first redefines the category of "fiscal decentralization", then analyses the reform of fiscal decentralization in our country as well as its institutional background. The 3rd chapter explores the effect that the reform made on the transition from planned economy to market economy, from positive and negative aspects respectively. The 4th chapter expounds the relation between f...