A Study On Local Government Behavior Under Specialization Of Financial Funds

In a specific historical stage, there is always a dominant institutional logicsystem affecting the behavior of local government. To study the logicality of thegovernment’s behavior in a particular period of history, it is necessary to find asystematic hub which can be associated with constructional elements in political,social, economic, and cultural fields. Far-reaching as it is, the hub could find outabout the internal logicality of local government’s behavior in selection and overalloperation.“Specialization of Financial Funds” is such a crucial systematic hub thatintegrates dynamic logicality in operating of all kinds of social elements andstructural connection of the local government’s behavior.The purpose of having a good understanding of specialization of financial fundsis to discern the logicality of the behavior of local government. The local governmentis in an awkward position against a background of allocation and management systemof special financial funds. On the one hand, the central government has theinstitutional power in theory, but is short on operational ability in practice. To ensurespecial funds for special purposes and special foundations for specific responsibilities,maintain a well-balanced development in regions, and establish more public services,there is a great need for local government to implement the policies. Without theparticipation of the local government, much greater resistance is on the way to put thespecial funds in place. But on the other hand, in the concrete implementation processof the special funds, the local government faces big problems, not only the allocationof the funds, but also the use and the efficiency of it. The role of the special fundsplayed in the local place is far from the satisfaction of the central government. Thelocal government’s over-reliance on the special funds brings with it a lot of socialproblems which conflicts with the wishes of the local people. Under thecircumstances, the article researches and investigates the behavior of localgovernment with the limitation on specialization of financial funds.When it comes to the existing documents, most of scholars study the behavior oflocal government in China based on the framework of relation between the centraland local governments. The framework of “central-local” analyses the problem fromthe perspective of agency by agreement of authority. It mainly dissects the localgovernment’s behavior in political system. However, elements that impact on thebehavior of local government is not merely the political system. Factors, such as thesocial system, would be included as well. The analytical framework of the logicality of multi-system breaks through disadvantages of “central-local”, and takes theelements in non-political system into consideration to evaluate the behavior of localgovernment. As a result, the perspective of the research on the topic transforms fromthe inherence of the organization into surrounding of it.The local government is in pursuit of the non-consensual circulation of thespecial funds while the central government is in charge of distribution of it. Therecomes a dynamic combat. The analytical framework of the logicality of multi-systemcan be used to build up a mathematical model of the dynamic combat. Taking theconstruction and evaluation of performance budgeting system about the government’sspecial funds in city A as an example to test the dynamic model, three phenomena areworth thinking profoundly about. Firstly, with the establishment of tax assignmentsystem, reform in the performance management of special funds is constantlydeepening. At the same time, the form is unconsciously put forward bymulti-systematical atmosphere. Secondly, the evaluation index of performance aboutthe management of the special funds in city A fluctuates according to marketeconomy which is under the guidance of the government. Thirdly, operation processof the management of special funds is deeply influenced by the “relation”. All thesethree phenomena is closely related to the logicality of governing a state, capitalizingthe market, organizing the bureaucracies and regulating the social relations.In the era of “pan-specialization”, special fiscal funds are the major form thatreflects the will of the central government. Nevertheless, the local government couldnot fulfill the original intention of special fiscal funds provided by the centralgovernment. The trend of non-consensual circulation of the special fiscal funds isbecoming more and more obviously which intensifies the contradiction between thelocal and the central. Consequently, the local government is in an embarrassingsituation. The management system of special fiscal funds with vulnerabilities andimperfections is the main reason for dynamic combat on benefits between the localand the central. Only improve and perfect the allocation and management system ofspecial fiscal funds can we regulate the funds and optimize the behavior of the localgovernment.