Research On The Standardization Of Financial Resource Division Between Central And Local Governments

From the foundation of P.R.C. to now, the system of financial resources division between the central and the local governments has been changed many times. In the second part of this paper, based on the examples of the many changes of the financial resources division between the central and the local governments, we put forward the problem that the financial resources division between the central and the local governments didn't conform to the standard. The starting point and the purpose of this paper are also raised in this part.The negative effects that the central government changes the regulations unilaterally are analyzed in the third part. The frequent changes made by the central government unilaterally made the central and the local governments play games of 'go' chess continually and brought a series of serious consequences, which raised the deal costs and the negotiation costs, and reduced the effects of the raising, disposing and using of the financial resources, In view of the malpractice, we analyze the systematic contributing factors that led to the free changes of financial division regulation by the central government. In the fifth part, we analyze the feasibility of standardizing the financial resources division and give the judging standard. How to standardize the financial resources division between the central and the local governments from the system point is also discussed from four aspects.It is considered in this paper that the defects of the system design of the financial resources division has led to the not conform to the standards of financial resources division. The main defect of the financial resources division system is the lack of effective binding mechanism to the central government, which has basic connection with the unitary political system in our country. To standardize the financial division between the central and the local governments and eliminate the series of negative effects led by the frequent changes of resources division regulation, we must firstly define the business right and the expenditure scope between central and local governments, and improve the resources division scheme. It is more important to ensure the right division between the central and local governments by constitution through political system reform. The frequent changes made by the central government unilaterally will be limited by the law. The effective binding system to the central government will reduce the systematic deal costs, and the resources division between central and local governments will be scientific, systematic and standard.