Research On The Relationship Between The Fiscal Decentralization And Public Service In Guangxi

After decades of development, China’s economy has taken place great changes,both economic aggregate and economic structure. Our country has developed from a poor and backward country into a leading economic power in the world. The amount of long-term accumulation of economy has compelled our country into a new stage,which the qualitative change is necessary, and it also faces with the "new normal" of economic development.The" new normal" includes Chinese urgent needs to deepen reform of financial system and eager to raise the level of public services. The tax sharing system reform in 1994, both complied with the development of the social and economic situation,and also released the vigor of local governments. After 30 years of development, great changes have taken place in the economy, establishing a modern financial system has become a urgent task which needs to be completed. For the past 30 years, the level of Chinese infrastructure construction has sharply improved. But, the improvement of the public services could not keep pace with the development of the economy. So, continuing to deepen the reform of financial decentralization and improving the level of public service are both important topics, which is our country economy development continues to keep stable must faced with.In this paper, the economic and financial conditions and level of public service in Guangxi province are described and summarized, through the study of Guangxi fiscal decentralization index found that the municipal government holds the Guangxi District 76%-76% of the financial resources; the responsibility to the municipal government spending has been heavy, and this responsibility is still on steadily rising trend; the municipal government financial responsibility of Guangxi can’t match their spending, nearly half of all spending need transfer payment to compensate for the government, and to the municipal government’s fiscal autonomy has a tendency to decline gradually. Using multiple linear regression model for empirical research on the relationship between them. First of all, there will be different influences on the level of public services when different fiscal decentralization index being used for research. Both fiscal revenue decentralization index and fiscal decentralization index have positive impact on the public services, and the fiscal decentralization index has the most influential impact on the public services in Guangxi. Fiscal autonomy index is negatively related to the public services in Guangxi. Probably because the more fiscal freedom currently, the more economic development will be pursued by the local government. Secondly, in the three models, which represented by the import and export of openness have significantly positive correlation to public service level, demonstrating that openness do improve the level of public service in Guangxi. Finally, the tertiary industry accounted for three variables such as fixed asset investment and urbanization in the three models are not significant related, suggesting that these three variables have very effect on the level of public service in Guangxi.