Evaluation Of Fiscal Capacity Of Shaanxi Municipal Government

In practice,local governments usually use financial indicators such as GDP,fiscal revenue,taxation,general public budget revenue,and transfer payments as indicators of local government's fiscal capacity.However,the above evaluation indicators can only reflect the government's function of drawing on financial resources to strengthen economic development.However,it can not reflect the provision of public goods to residents to serve the people in the jurisdiction.Instead,it will make the government pay attention to fiscal revenue and neglect fiscal expenditure in the performance of its functions.From the point of view of effectiveness,this paper defines the fiscal capacity of local governments as follows: local governments use their administrative power to tax within their jurisdiction,seek transfer payments,etc.To draw financial resources to achieve their ability to provide public goods for the residents of the area to perform local government functions.Based on the above definition,the core of local government capacity is defined as fiscal absorptive capacity and public goods supply capacity.Objective factors such as location conditions,population factors,resource conditions,and geographical environment are important factors that affect the financial ability of local governments.According to historical,geographical,and humanistic factors,Shaanxi Province is divided into three regions: from north to South,it is northern Shaanxi Guanzhong and southern Shaanxi.Based on the difference of natural endowment and so on,the economic development level of the three regions is quite different.This difference inevitably leads to the unbalanced state of financial capacity level.With the help of the factor analysis method in statistics,this article selects a typical model that reflects the local government's financial absorption ability and public goods supply ability,uses the data of the Shaanxi Statistical Yearbook and the statistical bulletin of the national economy and social development of ten cities,and selects 15 evaluation indicators.The financial capacity of 10 cities in Shaanxi province from year 2013 to 2017 was evaluated,and the evaluation results were analyzed.The author tried to find the causes of the imbalance in the level of financial capacity,and put forward policy recommendations to improve the level of financial capacity of the government of 10 cities in Shaanxi Province.