Research On The Influences Of The Fiscal Decentralization To The Expenditure Of The Local Governments

The essence of fiscal decentralization is making part of the central government power and property down to the local government, make local government expenditure can better satisfy the actual need of local residents, better achieve allocation efficiency, thus achieve the benefit maximization purpose of local fiscal spending. Based on the relevant theoretical overview of fiscal decentralization and local government spending, this paper analyze current situation of China's fiscal decentralization and local government expenditure, and test the impact of revenue and expenditure decentralization separately on the structure and scale of local government financial expenditure by empirical testing respectively, finally, according to the results of situation analysis and empirical test, and combined with actual situation in China, it puts forward some countermeasures, such as rational decentralization, improving local government spending benefits.Firstly, the paper expounds the main research contents and purpose, reviews researches on this thesis at home and abroad.Secondly, this paper references related theory of the fiscal expenditure changes and fiscal decentralization, explains the related concepts of fiscal expenditure for reference and fiscal decentralization, discusses the necessity of practicing fiscal decentralization and the influence mechanism of fiscal decentralization on local government spending.Again, through researching the development of fiscal decentralization in China, this paper analyzes the present situation of fiscal decentralization in our country, studies the expenditures scale and expenditure structure of local government from the reform in 1978 to 2009, including the trend of local budgetary outlays relative GDP growth, and the trend of each fiscal expenditure project (which are classified by functional properties)'s relative proportion of total expenditures.Finally, using the empirical analysis to make sure the influence of financial income and spending decentralization on local fiscal expenditure structure and outlays respectively, and according to the current situation analysis and empirical analysis results, combined with China's national conditions, puts forward some reasonable moderate countermeasures and Suggestions, including standardize legal system, rationally divided administrative and property, building perfect examinational system, optimizing the local government structure, establishing and perfecting the transfer payment system, etc.