The Research Between Revenue And Expenditure Structure Evolution And Government Behavior

The tax-sharing reform in 1994 have been achieved remarkable results on rationalizing fiscal relationships between central and local government and the strengthening of national macro-control capability.Combined with local conditions, local government’s implementation in tax-sharing fiscal administration system follow the same tax-sharing principle and mode used by central government to provincial government to county-level government, so the financial situation has improved than that in the past.However, due to the incoordination on distribution between financial and administrative powers of superior and subordinate government, leading to the revenue and expenditure structure of a certain degree of distortions, so that a certain degree of influence on government’s action and function.Forced by the fiscal expenditure pressure, the county government as a local interest subject, always seeking their own interest and showing some non-standard behavior characteristics, such as the local debt and land revenue, while submitting to the state government.The problem that county government via the approach beyond the regulations to make up for the budget gap has been increasingly serious, which is incompatible with the goal of promoting local economic development and the stabilization of state macro-economic, and challenge the economic sustainable development. Therefore, studying the impact that the evolution of structure of revenues and expenditures in county government have on governmental behavior makes great realistic significance.This thesis has four parts.The first part makes a simple literature review about the revenues and expenditures structure at home and abroad.In the second part, A detailed analysis of the evolution of financial revenue and expenditure structure based on the fiscal date of Anhui province in recent decades, This is mainly to analyze the structure of income and expenditure from two parts.The result shows that, According to the proportion of central and local fiscal revenue over the past decade, tax-sharing reform focused primarily on enhancing central government’s ability of income concentration, leading to the incoordination on distribution between financial and administrative powers of local governments, and resulting in excessive dependence on external revenue beyond the system.Combined with the examination and assessment system in China, local government tend to be more emphasis on economic development while neglecting the invest on social welfare and public services.The third part mainly about straighten out the relationship between the level of governments in China, and reveal the underlying causes of behavioral changes and specific performance.In the last part, According to the operation condition of county government in Anhui province, the last part will explore the basic ideas to solve financial difficulties of county government of Anhui province in the aspect of the unification of routine and financial power, standardizing government behavior.so that some positive suggestion will presented.