Translated Abstract
Fiscal system is an important link between economic system and political system. The proper fiscal system can provide a foundation to the reform of economic and political system. Now we have stepped into the deepwater area, the incompleteness and shortcomings of the tax-assignment system in1994 expose gradually. The assignment of the intergovernmental administrative power and fiscal power are not clear or specific. The administrative power tends to be given to the local governments but the fiscal power is controlled by the central government. The intergovernmental administrative power and fiscal power don’t match very well, which lead to low efficiency to the allocation of resources and affect the functions of the governments. At the present stage, China has accumulated a certain of social contradictions, which urgently needs to deepen the reform in response to a potential crisis. So it is of great significance to social and economic transformation by deepening the tax-assignment system reform and dividing the intergovernmental administrative power and fiscal power properly. We must solve this problem urgently.
According to the thoughts above, firstly, this dissertation bases on the fiscal decentralization theories, expounding the theories of the division of intergovernmental administrative power and fiscal power, and pointing out the principles they should follow. Secondly, it elaborates the content of the tax-assignment reform and takes the local government as a case of the study, so as to find the problems and make detailed analysis. Generally speaking, the problems are that the boundary of government and market is not clear; the division of intergovernmental administrative power and fiscal power is not specific. The central government collects more fiscal power but performs fewer duties, while the local governments take more affairs but lack of corresponding fiscal revenues. Moreover, the structure of the fiscal transfer system is not rational. Thirdly, this paper analyzed four countries of different political system and development degree, such as America, Japan, India and Russia, from which we get the enlightenment and reference of the division of intergovernmental administrative power and fiscal power. Finally, aiming at the current problems, this article puts forward the corresponding measures to deepen the tax-assignment reform and divide the intergovernmental administrative power and fiscal power properly.
In conclusion, on the division of intergovernmental administrative power, the central government should take more responsibilities and the administrative power and expenditure responsibility of the provincial, municipal and county government must be specified. At the same time, providing guarantees by corresponding laws and regulations. On the assignment of fiscal power, firstly, we should build a complete tax system and divide the taxes among all levels of governments. At the same time, the local government should be endowed with partial tax legislative power so as to establish a relatively independent local taxation system. Secondly, standardizing the non-tax revenues, giving local government partial right of loan floatation and improving the intergovernmental fiscal transfers. As a result, our country’s fiscal system will be improved greatly by the reasonable assignment of intergovernmental administrative power and fiscal power. The political and economic system reform will also make great progress.
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