Chinese Inter-Governmental Fiscal Decentralization Based On National Governance Theory

The intergovernmental fiscal decentralization relationship is the most important part of the fiscal system in country. It is the basic system guarantee for the central and local governments to exercise government functions rationally,to determine the direction of fiscal expenditure and to obtain fiscal revenue. From a global point of view,there is a big difference between the government's fiscal decentralization in the federal state and the unitary state. But in a market economy, intergovernmental fiscal decentralization relations are showing a trend of decentralization and the development of multi-level. The intergovernmental authority and tax revenue division is the main manifestation of its decentralization and multi-level characteristics.China's inter-governmental fiscal decentralization has undergone a transition from a subordinate relationship in the planned economy period to a contractual relationship in the period of the socialist market economy. But the truly decentralized and multi-level characteristics of the intergovernmental fiscal decentralization relationship can be truly established after the " tax-sharing "reform . Although the "tax-sharing" reform succeeded in establishing the principle of inter-governmental expenditure responsibility and income division to adapt to a market economy and for the first time established a transfer payment system to balance intergovernmental fiscal imbalances, However, the essence and goal of the"tax sharing system" is not the real fiscal decentralization but the fiscal centralization.Although the "tax-sharing system" reform has substantially increased the "two proportions" of the central government, the sinking of power has also caused grass-roots fiscal difficulties. Under the pressure of decentralization system, there are many local acts alienation such as local fiscal competition, land fiscal blowout, high local debt, local budget constraint softening, local bureaucratic corruption and so on.In addition, with the change of the international economic situation, the developed countries in the post-crisis era will continue to strengthen the containment of the developing countries, and the traditional framework of fiscal decentralization under the guidance of public finance can not adapt to the intensified international competition order. Therefore,a new round of "tax-sharing"reform "was forced to put forward. If the tax system reform completely change the central and local fiscal contradictions and fiscal control ability weakened, we must straighten out the relationship between the central and local interests, Therefore, it is the key to establish the intergovernmental fiscal decentralization system based on the state governance. The full text of the paper is to answer this question.The main part of the paper can be divided into five key sections:In the second chapter, the paper reviews the basic theory of the change of the relationship of fiscal decentralization under the trend of decentralization, On the basis of the classical theory of public goods, the theory of public choice, the theory of state governance and the theory of fiscal decentralization, the author constructs a 2+3 framework of the current fiscal decentralization. This chapter analyzes the structure of the intergovernmental fiscal decentralization system between the major federal countries and unitary countries in the world, and compares their responsibility and expenditure division, tax revenue division,transfer payment system and government debt management.In the third chapter, the paper focuses on the basic framework and the core content of the intergovernmental fiscal decentralization based on the state governance. Firstly, the author analyzes the limitation and dilemma of the decentralized relationship between subordinate governments and vertical fiscal decentralization after tax sharing system under the planned economy system, We believe that although the tax-sharing system reorganizes the inter-governmental financial resource allocation structure, the essence of the intergovernmental fiscal decentralization is not the division of financial rights but the division of financial resources. The consequences of the operation of the tax system is tax collection rather than tax decentralization, So the tax system established under the guidance of public finance theory can not adapt to the socialist market economic system and more intense international competition. Therefore, it is necessary and urgent to construct the government-oriented intergovernmental fiscal decentralization. Secondly, the author systematically discusses the general framework and content of intergovernmental fiscal decentralization based on state governance. The author thinks that the top-level design of the intergovernmental fiscal decentralization relations is the national governance view of the financial essence; the precondition is the division of government functions, Thirdly, it analyzes the logical relationship among the four elements of the new-type fiscal decentralization. It emphasizes the responsibility from the start, matching to the statutory division of powers, with the power as the base complemented by matching financial allocation, and then gradually optimize the division of financial rights, to promote financial and financial scale adaptation. Fourthly, the article proposed a new type of intergovernmental fiscal decentralization of the relationship between the three forms of co-existence, It is pointed out that the embedded logic of the three-dimensional relationship between financial power, authority and financial power and weak central power is the reliable guarantee for the running of the fiscal decentralization.In the fourth chapter, according to the operating mechanism of the intergovernmental fiscal decentralization relationship and the particularity of the Chinese fiscal decentralization,the paper has reconstructed the financial decentralization index, And from the perspective of spatial analysis,empirical study of China's fiscal decentralization of spatial pattern evolution and the impact of factors under the state governance theory. And from the combination of dynamic and static point of view, given empirical support for the fiscal decentralization itself has obvious spatial spillover effects and "path dependence" relationship.In the fifth chapter, the paper uses the threshold panel model to estimate the optimal level of fiscal decentralization which is beneficial to the economic growth by means of several types of fiscal decentralization index constructed, The results show that the decentralization and integration of the developed regions are close to or reaching the optimal decentralization level, and the majority of the fiscal decentralization, whether in the eastern region or the central and western regions, is far beyond the optimal decentralization threshold,It shows that decentralization has fallen into a negative correlation range,which is not conducive to economic growth, and gives an objective basis for future policy adjustment.Finally, in the sixth chapter, we focus on the direction and focus of the new round of decentralization reform, Emphasizing the intergovernmental division of authority to promotethe "expenditure responsibility - financial power - financial power" sequential reform; The following tax-sharing system reform and the local main tax: property tax, resource tax, retail tax, individual income tax cultivation; To promote the "pressure type" decentralization system to the "forcing type" decentralization system transition is the future of the three major reform focus. In order to promote the Chinese-style fiscal decentralization system of self-improvement and repair.