Jurisdiction Of The City Government's Fiscal Decentralization Research

Public finance and Tax reform is an important part of economic reform, which is an important institutional foundation of effective implementation of macroeconomic policies. After the reform of Tax Sharing System, the Chinese government's financial authority and powers division are preliminarily rationalized. However, there are many problems in the current tax system during operation, which led to the grassroots government fiscal difficulties and the low equalization of basic public services in areas. It largely derived from the financial authority and powers between the government and unreasonable transfer system, and particularly the government's decentralization below the provincial level is very incomplete primary. Therefore, the theories and issues study on current status of primary separation of powers between governments will greatly enrich the theory of public finance and tax reform.In this paper, we take West Lake District and Hangzhou City for example, and analyze the city and district government's fiscal decentralization issues and the higher the level of government financial power division between the Government allocation of functions as well as intergovernmental transfer payment system.First, the paper reviews the history and basic theory about system of intergovernmental fiscal relations between governments. It also comprehensively surveys the impact of fiscal decentralization system under market economy in different economic systems and different stages of development. Combined with the background of the reform of our tax system, it reviews the traditional theory of fiscal decentralization and the reality of the situation in China at last.Secondly, the article analyzes the basic situation of revenue of West Lake District. It analyzes the total revenue of the district and carries out separate analysis of budget revenue structure, non-tax revenue as well as the structure of transfer payments. Finally, it reviewed and summarized from the perspective of the government fiscal power and revenue division.Again, the paper analyzes financial expenditures from the perspective of division of powers between the Hangzhou West Lake District. Because the west Lake District's financial expenditure structure are determined by the achievement of government functions and financial protection mechanisms, so we analyze the scope of government function and identify problems in the current relationship between local powers and financial resources.Finally, on the basis of the above process and results of theoretical analysis, this paper presents a number of districts governments fiscal decentralization policy recommendations for the reform of substantive departments.In short, the paper conducts a review about status of fiscal decentralization between district and city government, on the basis of the detailed information and rich data from the West Lake district database, reveals the problems between the function power and fiscal powers and enriches the theory of governmental decentralization. However, due to the complexity of this issue and the author's limited research ability, the paper can not solve all the issues involved in in-depth analysis; therefore, this article will continue research attention in future.