Fiscal Analysis, The Chinese Government Control Failure

Government regulation is an inseparable part of public policy .The scope and degree of government regulation has great impact on the welfare of people. The codes and regulation directives issued by government exert profound influence on the active participant in the market economy. Effective regulations go a long way to the realization of public finance function and to the optimization of resource allocation. It is very helpful for the growth of economy and the improvement of social welfare. But in reality, the prevalence of malpractice of government regulation causes great problems: the mine explosions, the fake milk powder accident, the Winter Palace seepage proof project, the resale of Guang Ming milk and so on. So it is imperative to explore the reasons of government regulation failure and adopt the effective measures to treat them.This paper adopts logic deduction approach to set up a frame of government regulation from the perspective of public finance. It includes four parts.The introduction gives a brief description of the background of government regulation and the significance of examining the problems around government regulation failure. Then it introduces the concept of government regulation and government regulation failure. Last but not least, it points out the two threads the paper reasons around. First, government regulation is an important kind of public goods. Improving the supply mechanism is an effective measure. Second, it is advisable to perfect public finance tools to handle government regulation failure on the provision of the close relationship between government regulation and public finance.The fist part analyses the relations between government regulation and public finance. It explains the advantage of probing government regulation failure from the perspective of public finance. Government regulation is a peculiar kind of public goods and belongs to the area of public finance management. The cross...