Research On Local Government Fiscal Effort Under Tax Decentralization System

Fiscal effort is the process in which local governments adjust their government behavior through economic or political means in order to achieve their potential financial capacity.Local government financial effort is a quantitative expression of local government's initiative to raise local fiscal revenue,which depicts the realization degree of the effort.There are a variety of factors affecting the fiscal effort of local governments.Based on the allocation link of social reproduction,this paper classifies it into two categories.One is the allocation factor of financial resources,including the initial allocation and redistribution of financial resources,namely fiscal decentralization and transfer payment.The other is non-fiscal resource allocation factors,including local economic development level,population size,industrialization level,regional openness,revenue and expenditure pressure,inter-governmental fiscal competition,tax enthusiasm and collection and management efficiency.The focus of this paper is the influence of fiscal decentralization and transfer payment on local fiscal effort.Most scholars focus on the analysis of the relationship between financial differences and fiscal systems including the transfer payment when studying the regional financial differences,which provides an important reference for the direct governance of excessive differences.However,the research on the degree of fiscal efforts of local governments and their relevant influencing mechanisms is of great practical significance to correctly understand the causes of the financial disparity between regions,the direction of governance,and the improvement of fiscal and taxation systems and transfer payment.In this aspect,the existing research is not much,empirical analysis is mostly based on the provincial data on the basis of traditional econometric analysis.However,China implements the financial management system of one level of government and one level of budget.The role of municipal and county-level finance in local governments cannot be ignored.Moreover,county-level finance is the foundation of national finance,and county-level finance has realized nearly one quarter of fiscal revenue and one third of fiscal expenditure in China.This paper tries to make a rough calculation and analysis of local government's financial effort by using the national financial data of provinces,cities and counties.Based on spatial spillover Angle at the same time,through efforts for the coming fiscal space doberman model degrees do measurement test,the effects of model estimation and decomposition,trying to sort out local government fiscal effort degree of behaviors,so as to promote the central-to the governance and expenditure responsibility division and financial supply side empirical data and empirical reference for the structural reform.The article finds that some local income and expenditure contradiction is sharp,the financial resources gap is big;The outstanding local debt problem endangers the financial security;Transfer payment does not play the role of equalization,and the structure is not reasonable;There is great room for improvement in the degree of financial effort,and the regional difference is great.Based on the research conclusions,this paper puts forward feasible Suggestions in line with China's national conditions in combination with the hot spots of recent high-level economic conferences and the pain points of the new round of fiscal and taxation system reform.First,it is necessary to accelerate the division of central and local administrative power and expenditure responsibility,and deepen the reform of fiscal and taxation system;Second,we need promote supply-side fiscal reform to fill the financial gap.Third,we should standardize local debt financing mechanisms to prevent and control financial risks.Fourth,it is best to improve the transfer payment incentive mechanism and raise the level of fiscal motivation.