Research On The Fiscal Decentralization Legal System

The reason that the fiscal decentralization system exist is that it can efficiently distributethe national wealth. It not only provides the procedures of the financial revenue, the legalboundaries, and also determines the allocation of public wealth among all levels ofgovernment. It provides financial support for the government to perform its functionsproperly and protect the fundamental rights of citizens.With China’s rapid development, we accumulated huge foreign exchange reserves of$3.31trillion on one hand that cause central government faced enormous pressure on dollardepreciation，on the other hand, local financial liabilities of more than7.9trillion Yuan，many local government faced the huge financial gap that unable to cope with a largenumber of local affairs spending. Unreasonable fiscal decentralization system derived froma series of problems. Our economic reform issues faced a multitude of things, return totheir roots it’s a basic problem，that is how to collect, how to allocate and how to spend themoney。That is why I choose this topic as my thesis’ topic。In this paper, first of all, I introduce the fiscal decentralization theory from the point ofview of economics, sociology and law, focuses on explaining the significance of fiscaldecentralization system for the country’s political stability, economic development andpeople’s rights protection. Subsequently enumerate and analyze the advanced countries ofits system of fiscal decentralization. Pointed out the shortcomings in the present the actualoperation of the system of fiscal decentralization and analysis of the reasons，And in theend, try to give a reasonable, legitimate operational prototype of the system.