Research On Financial Resource Allocation And Improvement Between Central And Local Government After The "Replace The Business Tax With The VAT"

Since 1994,the reform of the tax-sharing system in accordance with the "administrative power combined with financial power" principle of the design of the financial management system,the relationship between administrative and financial power has been the focus of many studies,also,the central government has repeatedly raised many programs and guidance on financial reform.Fiscal system reform affects the allocation of social resources,and the distribution of benefits between the central and local governments is the key link.For the past twenty years,the financial decentralization trend relates to the irrationality of the division of administrative power between the central and local authorities.The local governments undertake more expenditure responsibility,the revenue and expenditure between the central and local fiscal is in a non-equilibrium state.The decentralization of the administrative power accompanied with the concentration of the financial power,leading to the disconnection between the revenue and expenditure,thereby,affecting the provision of local public goods and public services.At the same time,the local government is overly dependent on fiscal transfer.Although the tax rebate and transfer payments can make up for the basic government's financial gap,in the process of implementation,it is difficult to ensure equality,resulting in great finance pressure in some grass-roots areas.With the change of the situation,the lack of financial resource gets more attention.In 2012,China began to reform the VAT on transportation and some modern service industries in Shanghai,and expanded its pilot industries and regions gradually.Until the May 2016,when China implemented a comprehensive "replace the business tax with VAT",meaning that sales tax will be out of the stage of history,and value-added tax may become China's basic tax.With the disappearance of business tax,the local government will be lack of the main tax,and tax revenue will be declined,while the local's affair responsibility did not cut down,local governments will be in a more difficult situation.At first,this paper made a statement of the basic of the full text,mainly including the research significance,literature review,the content and framework,methods,innovation and the insufficiency;Secondly,definite the relevant concepts,and quotethe theoretical basis of intergovernmental fiscal resource allocation,then the skeleton of this paper are established.On the basis of rationalizing the reform of the financial system,we explore the historical evolution of the division of intergovernmental governmental affairs and financial resource.And from the view of expenditure,income and transfer payments,we can be more easily find out the allocation of financial resource between the central and local government through empirical analysis;For the comprehensive "replace the business tax with VAT" program,firstly,we have a full view of the tax revenue and expenditure.Then we explore the change of the Intergovernmental fiscal resource allocation.Finally,this paper explores the dilemma of intergovernmental fiscal distribution.Under the comprehensive reform of "replace the business tax with VAT",this paper will put forward the improvement plan of the intergovernmental fiscal allocation.Taking advantage of overseas experience and combining with the situation of our country,we should design the mode of value-added tax sharing reasonably.Then strengthening the construction of local government's own financial resource,finally,building the allocation of financial resource program.