Study On The Public Financial Risk During Dual Economy Unification

China, as the largest developing country in the world, has made a corresponding institutional arrangement based on the fiscal and taxation system to follow the development idea of "efficiency first, equity considered". Such institutional arrangement makes various production factors incline to cities or industrial sectors with higher efficiency, and creates a Chinese-style economic growth miracle. However, along with such institutional arrangement, a corresponding side effect, namely, dual economic structure is also produced. According to Kuznets' inverted U curve relationship, the reinforcement of dual economic structure in the economic development process is a normal phenomena, but Kuznets'inverted U curve also describes that the phenomenon of income inequality will first rise and then fall along with the economic growth. However, at present, the dual economic structure in China has significant features, and it presents an upward trend on the whole. If such upward trend can not be well contained, it will affect the equity of the whole country and even will affect the efficiency. As a result, "it will not only seriously restrict the transmission of institutional reform, but also will directly affect the space of institutional adjustment." Therefore, to some extent, dual economic structure has become a "bottleneck" factor affecting the harmonious economic development of China. To narrow the gap of dual economic structure, the traditional institutions that hinder the free flow of production factors in dual economy must be reformed. But, the road to reform has never been flat, and corresponding cost should be paid or a corresponding risk-fiscal risk will be produced.Therefore, this paper firstly summarizes the relevant theoretical bases of fiscal risk in the dual economy unification. Secondly, from the perspective of comparing the labor productivity, resident income difference and resident Engel coefficient between the "traditional sectors" and "modern sectors", it empirically analyzes the present situation of China's dual economic structure, analyzes the cause for generation of dual economic structure from the perspective of dual fiscal system, and based on total factor productivity difference, it empirically studies the influence of labor mobility, urbanization and land intensive management on the transformation of dual economic structure and route selection of dual economy unification. Thirdly, it analyzes the present situation and characteristics of surplus rural labor mobility, classifies and analyzes and also empirically studies various risks generated in the process of surplus rural labor mobility and the influence of these risks on the fiscal risk. Fourthly, it analyzes the present situation and general rules of Chinese urbanization, classifies and analyzes and also empirically studies various risks generated in the process of urbanization and the influence of these risks on the fiscal risk. Fifthly, it analyzes the connotation of land intensive management and the practice and present situation of land intensification in China, summarizes the general rules of land intensive management, classifies various risks generated in the process of land intensive management, analyzes the influence of these risks on fiscal risk, and empirically studies the risks generated in the process of land intensive management and their influence on the fiscal risk.Based on the above analyses, this paper finally puts forward how to correctly deal with the relationship between government and market from the perspectives of relationship between government and market, division of administrative power and financial power based on government function range and matched financial guarantee mechanism, and fiscal risk early-warning and prevention mechanism. And it also scientifically divides the administrative power of governments at all levels according to the government function range, scientifically divides the financial power based on the administrative power division, and establishes a financial guarantee mechanism matching the administrative power and a scientific and perfect fiscal risk early-warning and prevention mechanism.