Research On Legal Mechanism Of Central Government Regulating Local Finance

Since Tax-sharing regime of 1994,China has gradually formed a highly centralized model in finance.Central government grasps the majority of financial power and resources,and has a full control of local finance.This model has caused a lot of regulatory difficulties and local "adverse reactions",induced "land finance","high local debt",disorder expansion of local non-tax revenue and so on,seriously affected local financial governance and central regulation effect.With such a dilemma,the fundamental solution is to change the mode from a high degree of centralization to moderate one,from "comprehensive control" to "moderate intervention".Under moderately centralized mode,the disequilibrium of central and local finance is fundamental premise and infrastructure of central regulation.Appropriate concentration of financial power and resources,and moderate intervention are limit requirements.At present,the most important thing is to construct and promote moderate centralization model through two core strategies,authority adjustment and behavior regulation.Shape the relatively independent financial status of local government and build a moderate centralization model by reducing the concentration of financial power and resources.Use non-mandatory means such as guided incentive and consultative cooperation,change the sample distribution of behavior regulatory mechanism,improve the local government compliance,achieve cooperation of central and local governments,and promote the operation of moderately centralized mode.This article will elaborate in following five chapters:The first chapter status description and problem interpretation of central government regulating local finance.This chapter mainly describes the status of central regulation in our country,clarifies the current model of high degree of centralization of finance,reveals the problems caused by this,and puts forward the view of transition to moderately centralized mode.First of all,it reveals the main indicators to measure the degree of fiscal centralization,the vertical allocation of financial and tax power.On this basis,it observes the situation about central government regulating local finance after Tax-sharing regime.The analysis shows that central government grasps the majority of financial power and resources,and has comprehensive control of local finance,which has formed a highly centralized financial model.And analyze the reason why there is a high degree centralization of tax legislation during Fiscal Responsibility System.Secondly,it discusses the local government's "response" under highly centralized financial model,take measures to circumvent constraints of central government and to extract central financial funds and do "policy under the countermeasures" strategic behavior.Through inappropriate tax competition with other local governments to stick and expand tax benefits of their jurisdictions.To get more fiscal revenue in the form of arbitrary charges and competition with private etc,to invest in financial funds for projects that are "short and fast" and easy to get record of achievements,ignoring the provision of public goods.Highly centralized financial mode has also induced "land finance","high local debt",disorder expansion of local non-tax revenue and so on.Finally,it reveals the general rule of central regulation and world trend of moderate centralization,puts forward the view of transition to moderately centralized mode,and explain the basic connotation of moderately centralized model.The second chapter measurement baseline and core strategy of moderate centralization model.This chapter revolves around measurement baseline and core strategy of moderate centralization model.Regards non-equilibrium of central and local finance as fundamental premise and infrastructure of central regulation.Moderate concentration and moderate intervention are limit requirements.Authority adjustment and behavior regulation are regarded as the core strategies to achieve moderately centralized model.First of all,we observe the changes in history and realistic pictures of central regulation about typical countries,testify the non-equilibrium structure.Based on the current reality of China's financial governance,we can see the inevitability and necessity of non-equilibrium.Secondly,use modesty as an analytical tool to demonstrate the inevitability of appropriately moderate intervention from perspective of jurisprudence.It argues that modesty is the endogenous concept of central regulation,analyzes the basic content of modest intervention,and explores the fit between it and constitutional requirement of local initiative.Thirdly,it interprets benchmark of moderately centralized model,and regards non-equilibrium as fundamental premise and infrastructure of central regulation,but financial power and resources can not be too concentrated.It regards improper authority allocation and illegal behavior as core field of central intervention,central intervention is a supplementary regulation,proportion principle is key ruler of appropriate regulation,to maintain moderate intervention.Finally,define authority adjustment and behavior regulation as core strategies of construction and promotion of moderate centralization model.The third chapter the construction of moderate centralization model:a perspective of authority adjustment.The core of this chapter is to construct moderate centralization model by the allocation of local financial authority.First of all,it puts authority adjustment as important mechanism of central government to restrict local finance,clarifies direct goal of authority adjustment,reducing the concentration of financial power and resources of central government,shaping the position of local government as relatively independent financial entity,and analyzes factors of authority adjustment.Secondly,regulate the allocation of local financial authority to construct moderate centralization model.Moderately relax local tax power,and further restrict local non-tax revenue power and reduce the mandatory expenditure,"loose" local expenditure power;moderately relax the authority of local treasury cash management and increase publicity restriction degree and effectiveness of local operating state-owned assets.Finally,in order to balance the dynamic and stability of local financial authority,it should establish a dynamic adjustment mechanism——Fiscal and Tax "Pilot".The fourth chapter the promotion of moderate centralization model:to put behavior regulation as the center.This chapter is to construct a complete behavior regulation system,to achieve optimum combination of regulatory means and effective connection regulatory mechanisms.And gradually reduce the use of"command-control" means,increase "negotiation-cooperation" type,and change distribution of regulatory mechanism.First of all,it discusses the basic issues of regulatory mechanism design from concept,principles and concrete action.Regard taxpayer's rights and interests protection and basic rights achievement as concept,use comprehensive,timely,appropriate principle,put means categorization as the entry point of specific design.Secondly,it analyzes the types of regulatory means,and divides different means into guiding,control,discovery,correction,relief and responsibilities mechanism according to different functions.It also analyzes operational mechanism,applicable cases and improvement direction of different means.Finally,it matches regulatory subject and means,optimizes the combination of regulatory methods,effectively connects regulatory mechanisms,and achieves integration of local financial information through technical means.The fifth chapter the operational protection of moderate centralization model.This chapter is intended to show that central regulation should put the taxpayers as the center,run on the track of rule of law,adjust the division of financial power and income through law,and reform behavior regulation mechanism legally,to ensure the operation of moderately centralized mode.Set up central regulation restricted area to protect the basic financial power of local governments.First of all,regarding taxpayers as the center not only requires the protection of taxpayers' rights and interests from central government in overall,but also requires local governments to meet the needs of taxpayers.Therefore,moderate concentration of financial power and resources and moderate intervention is imperative.The concept is prerequisite and operational constraint for moderately centralized model.In addition,use law to restrain central regulation,adjust division of central and local financial power and income by law,use rule of law to reform behavior regulation mechanism.Secondly,control central regulatory power by procedure,such as system of regulation impacting assessment,expression of local interests,explanation of the reasons and.publicity.Finally,Set up forbidden zone of central regulation to secure basic financial power of local governments.Central government can't totally repudiate local tax power,use force to turn in local revenue sources and to spend though local budget and do substantive injustice actions.It can prevent concentration of financial power exceeding bottom line.