The Research On The Impact Of Fiscal Decentralization On Supply Efficiency Of Basic Public Services In China

Western fiscal decentralization theory holds that decentralization has a strong incentive effect for local governments to provide basic public services.It can effectively improve the efficiency of basic public services.Since the reform of the tax system in1994,China's social and economic development has been continuously improved,but the improvement of the supply level of basic public service is lagging behind the speed of economic development.Under the Chinese fiscal decentralization system,the incentive mechanism of economic growth with GDP as the core has caused local governments to pay too much attention to local economic construction and ignore the responsibility of their basic public service supply.The supply of basic public service resources is inefficient.Fiscal decentralization is seen as the institutional cause of the under-supply of basic public services.Fiscal decentralization is considered to be the institutional cause of the shortage of basic public services.Therefore,the paper studies the influence of fiscal decentralization on the supply efficiency of basic public services,hoping to provide ideas for improving the current situation of basic public service supply and realizing the equalization of basic public services.This paper combines the normative analysis and the empirical analysis to study the influence mechanism of China's fiscal decentralization on the efficiency of basic public service supply.First of all,this article summarizes the domestic and foreign research on the impact of fiscal decentralization on the efficiency of basic public services,and discusses the concept of basic public services and supply efficiency and the theory of fiscal decentralization that local governments effectively provide basic public services.The theory of fiscal decentralization holds that decentralization can promote the effective supply of basic public services.From the perspective of Chinese fiscal decentralization,the article discusses the function mechanism of fiscal decentralization on basic public service supply from the aspects of fiscal system design,incentive mechanism and external environment.Secondly,based on the panel data of 31 provinces in China,the paper uses DEA software to calculate the supply efficiency of China's basic public services from both static and dynamic perspectives.The study finds that thesupply of basic public services in 15 provinces in our country is inefficient and there are differences in the supply efficiency among different regions.Modest investment scale and efficient management level are the key to improving the supply efficiency of basic public services.Then,the paper analyzes the impact of fiscal decentralization on the efficiency of basic public service provision.It is found that the influence of fiscal decentralization on the supply efficiency of basic public service is inverse U type.The unregulated transfer payment system and the unsound incentive mechanism have a certain hindrance to the effective supply of basic public services.Finally,from the perspective of fiscal decentralization in China,this paper studies the reasons for the inefficient supply of basic public services in our country and puts forward relevant policy suggestions.The first is to perfect the fiscal decentralization system,including the transformation of government functions,making clear the responsibility of local government expenditure,improving the local financial system,safeguarding local financial resources,standardizing government transfer payment system and strengthening government budget.The second is to reform the government incentive and performance appraisal mechanism.The third is to establish a mechanism for residents' preferences.The fourth is to enhance management capabilities and establish a basic public service efficiency evaluation system,and so on.The innovation of the dissertation is that according to the theory of fiscal decentralization,it elaborates the influencing factors and action paths of fiscal decentralization on the provision of basic public services.