A Study On Changes And Development Of China's Financial Relationship Between Central And Local Governments

On the study of financial constitution, the financial relationship between central and local governments is one of important issues. From perspective of traditional study on the Constitution, the financial relationship is also an important part. Judging from the China's current situation, there are many problems as follows: excessively the financial revenues focuses on central government, instability of local fiscal and tax revenues, the high cost of transfer payments and serious leakage, the increasing official corruption. Finding the reasons on the legal level, undoubtedly, it's because that there are not effective enough legal and constitutional bases. Therefore, this paper, on the basis of the analysis of financial power, will focus on analyzing the relationship between central finance, local finance and civil right, trying to reveal the financial relationship between central and local governments in Constitutional sense. In addition, the paper will comprehensively analyze how to perfect the supervised function of Constitution, how to promote the rule of law in fiscal area, as well as its method. The paper consists of four chapters as follows:Chapter one: basically sorting out the relevant constitutional theories by analyzing the constitutional logic of the financial power, this paper argues that it consists of civil financial power, state financial power and government financial power; then analyzes the operating environment of the financial power at two levels: the constitutional history of modern and the rise of public finance, and reveals that the essence of the financial relationship between central and local governments is the fiscal decentralization. Finally, this paper puts forward that the financial value of the constitutional separation of powers lays in protection of human rights and democracy.Chapter two: this paper studies the changes of the financial relationship between central and local governments from the founding of PRC to 2002. I divides this period time into three different stages:the establishment stage after the liberation, the initial construction stage in the early period of reform and opening policy, stage of reform after the Implementation of System of Tax Distribution and Public Finances. Comparing with the Constitution and legal status during the same period, I consider that the financial relationship between central and local governments in China will gradually bring out the rule of law and democratization.Chapter three: by analyzing the legal status and basic issues at present , I found out the lack of clear constitutional norms and the other legal resources are also very needed. The impact of the traditional planned economic system on financial relations between central and local governments is still quite profound. Finally the local finance is controled by the central financ.Chapter four:according to the issues discussed in chapter three, I put forward proposals in promoting the rule of law in the area of financial relationship between central and local governments such as: to implement the protection of human rights and the democratic values of the Constitution which includes:to improve the legal system about financial income and expenditure; to bring the constitutional supervised functions of the National People's Congress into reality; to strengthen financial and audit supervision and to improve the judicial review system in China.