Optimization Study On Sub-provincial Intergovernmental Fiscal Relationship In The View Of Basic Public Services In County

Basic public services in county play important role in the system of basic public services.It is firm foundation to realizing equalization of basic public services and the way to constructing socialistic harmonious society for improving supplying capacity of basic services in county.The county in China coverages a vast majority of backward areas and the poor who have strong needs for basic public services.After tax-sharing reform,under the guidance of the concept on construction service government,government departments at all levels attach importance to basic public services system and investment,as a result of improvement on compulsory primary education,health care and social security.However,there exists some shortcomings,such as lack of funds,low performance and government function vacancy.Basic public services is important key to solving problems of the farmer,farming and countryside,therefore the government departments at all levels attach great importance to it.Public finance carries out its public service function,provides public goods,and boosts equalization of basic public service.As an important part of public finance system,fiscal relationship between internal governments contain 3 elements,namely affair rights and financial power distributing and transfer payment system at different levels.Setting up a reasonable intergovernmental fiscal relation has a marked effect on the efficiency of performing public function and furfure has an effect on county basic public services.This article mainly studies on the effect of inter-governmental fiscal relationship on county economy growth under tax distribution system and this study focuses on the affair rights and financial power distributing among governments and transfer payment system at different levels with the theoretical analysis,empirical analysis.In the part of theoretical analysis,this paper researches the effect of 3 elements of sub-provincial intergovernmental fiscal relationship on basic public services in county.And then it researches the effect of the System of Province Administers County on basic public services in county.In the conclusion,(1)Affair rights distributing lacks scientific and reasonable principles and legally bound,as a result of low efficiency of public resource allocation.And because of present government officials performance assessment system which takes GDP as the core,local government officials lose the willing of basic public services.(2)Division of the tax revenue is unreasonable which leads the slow growth of county government revenue.And a taxation system with a turnover tax as the main element reduces the intention on basic public services.(3)Transfer payments play very important role in providing financial guarantee for the basic public services.However,Unreasonable structure weakens the performance of public service system of equalization.(4)In the System of Province Administers County,county officials with more financial fund disposition promote public service efficiency and quality.However,it does not solve the inequality between affair rights and spending responsibility.In the empirical part,taking the county in Inner Mongolia for research objects,selected 69 samples to verify the theoretical assumptions.In conclusion,(1)Fiscal expenditure decentralization has significantly negative effects on basic public services in county.And local fiscal competition may worsen the effect.(2)Financial resources and general transfer payments may have significantly positive effects on basic public services in county.Based on the above analysis,it puts forward some suggestions on how to optimize the sub-provincial intergovernmental fiscal relationship.(1)Transform government functions and establish the mechanism in which public finance tilt to basic public services.(2)Rationally divide the administrative authority among local governments in provincial,city and county level.(3)Strengthen fiscal responsibility in manor to side with for basic public services in county.(4)Constructing the tax system on the possession of real estate and perfect the local tax system.(5)Optimizing the structure of transfer payments,and increase general transfer payments.(6)Optimizing the Province Governing County System,rationalize the city and county levels of administrative duties and responsibilities.(7)Other supporting measures.