Construction Of Evaluation System Of Local Government Fiscal Capacity

The understanding of government financial capacity should not be merely on the size of the revenue, but should have a broader perspective. Under the existing financial system, government financial capacity should not only reflect the capacity of a region's income, but also the social regulation ability using fiscal policy in the region and the focused on spending security ability, and the ability of local governments to implement central policies . Therefore, the local government fiscal capacity is a capability system. In order to meet public needs, ensure social stability, promote sustainable economic development and regulate regional differences, it is the combined capability that makes full use of their controlled all kinds of social resources under a certain natural endowments and institutional framework. How to accurately evaluate and investigate this ability has great practical significance, for rational decision-making and scientific management. However, in the current theory and financial practice, yet there is no consensus on how to investigate the actual capacity of local financial. This paper attempts to make a preliminary exploration. Based on summarizing, sorting out and analyzing a number of existing financial capacities'evaluation methods, we further clarify the concept of the financial capacity, analyze affecting factors of fiscal capacity, and thus break the existing evaluation and methods , From the management capacity of financial budget, the basic support capability, learning ability, develop capacity, regulatory capacity, and anti-risk ability six levels we build a thirty-eight evaluation indicators, apply qualitative and quantitative evaluation models and methods and form the evaluation system of local government financial capacity. Applying this system, this article us 16 states as a sample in Yunnan Province (City) 2009, by the calculation data and empirical analysis to their financial capacity measurement and, we reached a basic conclusions and judgments. Redefinition of the new evaluation system in 16 states in Yunnan province (city) distribution pattern of financial capability; shows large differences in fiscal capacity among regions, sub-regional capacity of the financial strength of inequality.