An Empirical Study On The Realization Of Fiscal Decentralization To The Financial Function Of Government

It has been 20 years since the reforming of tax sharing. So far, we have established a more regular system of Fiscal Decentralization. The aim of the Fiscal Decentralization is to promote the cooperation between the governments in the Finance and to help the governments achieve the goals of the Finance. To the central government, the Fiscal Decentralization is effectual for them to achieve the goals of the Macroeconomic and the Income distribution. To the local government, the Fiscal Decentralization is effectual for them to achieve the goals of promoting the level of providing the public goods and services. While if our Fiscal Decentralization is effective to assist the governments to achieve their goals in reality and how about the degree of its effects? These questions should been texted and verified.Our research is beginning from the providing of public goods effectively. We analyze the relation between the providing of public goods effectively and the decentralization of governments’ functions, and the relation between the decentralization of government and the Fiscal Decentralization. Then we collect the researches about the Division of government functions and the Fiscal Decentralization, and we analyze the current situation of the Division of government functions and the Fiscal Decentralization. Then we raise the presume that the Fiscal Decentralization is effective to achieve the governments’ functions’ goals. Then we use the Econometric methods and the data in 1984-2013 to text and verify our presume and we conclude that the Fiscal Decentralization is less effective to achieve the governments’ functions’ goals. Overall, Fiscal Decentralization is inefficient. Finally, the research tries to find out why the Fiscal Decentralization is less effective, and whether there is a most appropriate Fiscal Decentralization to the Government Financial Functions.