Study On The Balance Of Financial Power And Governance Of Chinese Central Government And Local Governments

Governance refers to the governments’ power of offering public goods and managing public affairs, based on its position and function. Financial power refers to the governments ’ power of organizing fiscal revenues and arranging fiscal expenditure, within the prescribed scope by the Constitution and the law. The governance is the foundation of property rights division, while financial power is the ensurence of executive powers. The governance and the financial power are necessary to be divided between the central government and local governments. They can directly affect whether the central government and local governments execute power and provide public goods for the society, in accordance with the provisions of the Constitution and the laws. They can also greatly promote the realization of constitutional system. In order to achieve the balance of the administrative and financial powers, we need to insist certain principles, including tax principle of legality, the financial authority and powers matching principle; also, we need to take some measures, clarifying the central and local powers’ dividing range, reasonably allocating the central and local governments’ power of taxation, the fiscal legislative power, borrowing power are included. Although the federal system and unitary system countries are different in the realization of the fairness of financial authority and powers balance, due to the different path dependence and practices, but they do have similar results.In our country, there are a lot of problems on that aspect. For example, when it mentions the division of governance, local governments are endowed more power than the central government, and there exists many overlapping fuzzy regions. At the same time, the central government are endowed much more financial power than local governments, and the transfer payment system between them is not mature. All of these requires us to carry out a series of reforms, while we adhere to the tax principle of legality, the financial authority and powers of the matching principle and the characteristic of our country’ local principles and gradually progressive principle premise, including dividing the central and local power from the aspect of legislative, increasing local property tax guarantee and non tax ensurence, appropriately expanding the local government’s fiscal legislative power, improving the transfer payment system, establishing and improving the central and local authorities coordination mechanism etc..The thesis clarifies the definition of governance and the property rights at the very beginning, and then analyzes the necessity of the division of governance and the property rights from the perspective of public product theory, and also analyzes the necessity of financial authority and powers’ balance in the view of Constitutionalism. After that, it discusses the implementation of administrative and financial balance principles and measures the federal system and unitary state’ different paths and the same purpose. At last, this paper analyzes the problems existing in our country, in two aspects of governance and the property rights and it gives some corresponding suggestions, in order to realize all-level-governments of our country exercising power in accordance with the Constitution and the law, and promote the realization of constitutional government in our country.