Study On The Matching Degree Between Expenditure Responsibilities And Financial Safeguard

The match of expenditure responsibilities and financial safeguard is the core of the tax sharing system in grading.According to the viewpoint of fiscal federalism,the division of fiscal expenditure responsibilities is logic starting point to establish the intergovernmental fiscal relations,matching based on financial safeguard.The definition of government expenditure responsibilities clear,and to match the financial safeguard,is an important prerequisite to ensure the government to effectively fulfill the functions.The background of the tax reform in 1994 is that “two proportion” is low,which leaded to the design revolved around that expenditure responsibilities have been transferred to lower levels and financial power to higher levels.Then the design of the transfer payment system make up the financial gap of local government,but the transfer payment system is not perfect,resulting in the local government can’t effectively fulfill its expenditure responsibilities.This article starts with the analysis of the intergovernmental fiscal relations,analyzes the basic theory of expenditure responsibilities and the financial division.Then,it makes a detailed analysis of the logical relationship between the expenditure responsibility and financial safeguard,and put forward the basis and key of the matching,as well as the breakthrough of the matching.Statistical methods have been adopted to measure the matching degree between the expenditure responsibility and financial safeguard of the three levels of government in China’s central,provincial and county level.The results show that during 1995-2014,the government expenditure responsibilities and the financial safeguard of China’s central,provincial and county levels do not match.The central government’s financial allocation over expenditure responsibilities,and local government,especially the county government,is a serious shortage of financial resources.At the same time,the design of the responsibility of government expenditure and financial resources to match the concentration of indicators,better reflects China’s central,provincial and county three level of government expenditure responsibility and financial safeguard of the matching degree.So using quantitative analysis method,the matching concentration of governments at all levels has carried on the empirical analysis.The results show that economic growth and fiscal revenue decentralization promote the match of intergovernmental expenditure responsibility and financial,and macro tax burden and fiscal expenditure decentralization worsens the matching degree.Aiming at the above empirical conclusions and learn from international experience,this paper puts forward the policy recommendations of promoting the match of expenditure responsibilities and financial resources.The policy is the specific and reasonable division of the expenditure responsibility of governments at all levels,that the central government should take more responsibility for spending,in ensuring the financial strength of the central government to local government matching stable financial and making up the gap of local financial resources with design reasonable transfer payment system.