A Study On Fiscal Function In China Based On The Perspective Of Social Division Of Labor

In 1992, the market economic system was established in China. Compared with the traditional planned economy, market economic system means that main body of resources allocation should change from all-round government to the market. In that circumstance, we faced a question choice on "what should the market do, and what should the government and finance do". Then, "public finance" from the west, regarded as compatible with the market economic system, came into people’s mind and was established as the "mainstream" financial model. Accordingly, functions on resources allocation, income distribution and economy regulation became the "mainstream" fiscal functions. Current fiscal functions were based on the market failures and regarded finance just as an economic category or tool, which had played a positive effect to shrink the government’s economic behaviors and give full play to the market functions at the beginning of market economy establishment in our country. However, because of the starting point and methodology was too economization when western expects on finance researched fiscal problems, they excessively paid great attention to economic attribute of finance and economic modeling analysis path of fiscal problems. However, they ignored the inherent historical, political, and social attributes of finance. After that, finance has walked down along the road of "pure" economic analysis. It has become a tool of economic policies for the government, while lost its powerful vitality and explanatory power to politics, society and other fields.At the third plenary session of the 18 th CPC Central Committee, to boost the modernization of China’s governance system and governance capability was determined to be an overall goal of comprehensively deepening reform, and finance is the foundation and an important pillar of state governance. It pointed that fiscal and taxation systems concern resources allocation, market unity, social equity and enduring peace and stability. Which means fiscal functions have extended to political, social, economic and other broader fields, have been promoted to the height of "state governance", and finance is no longer just as an economic category or tool, it will play a more important role on a broader platform and in a greater scope. So, to establish fiscal functions adapted to the state governance modernization is becoming a new mission of the times.Based on the research perspective of "social division of labor" and the method of system theory, this paper constructs such a theoretical logic on the research of fiscal functions, which takes the complicated mega-system of society as platform, and " human’s needs----social division of labor----structure differentiation of the society huge system----internal differentiation of politics subsystem----finance generates and its functions allocation" as evolutionary path. Following the theoretical logic, this paper studies the characteristics of social division of labor and the dynamic evolution process of fiscal functions during different historical stages of human society----segmentary differentiation society, stratification differentiation society and functional differentiation society. Today, state governance modernization is the theme in China. Under such conditions, social division of labor gets sublimation and deepen, and which puts forward new challenges and requirements to the mainstream public finance and its functions. So, adhering to political, social and economic attributes of finance and its essence of publicity, according to the internal relation and interactions between finance and political, social and economic subsystems, this paper puts forward a new system of fiscal functions. Finally, on the basis of the conclusions from performance measurement, this paper proposes concrete implementation path respectively and safeguard mechanism.The main works, points and innovations of the paper are as follows:(1) The paper proposes a research ideas on fiscal function in the perspective of social division of labor, and preliminary constructs a theoretical logic taking it as evolution path. The paper points that social division of labor driven by human’s needs runs through entire human society. It is an internal dynamical mechanism for social development and transformation. Finance is a product of social division of labor in a certain historical stage. It produced and developed with deepening of social division of labor, accompanied by adjustment of social relations, evolution of social structure as well as differentiation of social functions. The deepening of social division of labor promoted the generation of finance and the historicity of social division of labor determines the dynamic evolution of fiscal function.(2)The paper clearly puts forward a research idea on fiscal function with the method of system theory and with the platform of society huge system. The paper holds that finance is a subsystem in the complicated mega-system of society. Fiscal functions are abilities and effects shown when acting on external environments. In the society huge system, political, social and economic subsystems are regarded to be the most direct, substantial and closest connection with finance. Therefore, fiscal internal structure and interactions between finance and each subsystem jointly stipulate the range and content of fiscal functions.(3)Using Luhmann’s classification standard on social patterns as reference, the paper systematically summarizes the characteristics of social division of labor and corresponding fiscal functions in segmentary differentiation society, stratification differentiation society and functional differentiation society. In segmentary differentiation society, in accord with simple natural division of labor and social structure like a replica, fiscal function was merely some kinds of ordinary and limited distributions to meet original public requirement. In stratification differentiation society, class division was more predominant. Accordingly, finance was labeled with strong class nature, and became a tool for rule. In functional differentiation society, each of systems is highly differentiated and tightly integrated each other, so finance has become an independent autonomic system. It serves as a medium and link among every system, and executes functions of energy supply and supervision. Evolution of social division of labor determines that finance possesses the unity of historicity and particularity.(4) This paper preliminary develops fiscal function system which adapted to state governance modernization. Based on the realistic condition that multiple governance subjects cooperate to govern and all areas balanced develop, on the internal relations and interactions between finance and each governance subject as well as each area, the paper puts forward the following fiscal functions: financing and controlling the government, wealth distribution, meeting the public needs, and points out that financing and controlling the government is the principal function for finance. Each function gets certain developments or innovations in such respects as connotation, basis, content, scope, target, mechanism and implementation way. Each function embodies financial innate character "publicity", and is an inherent objective existence for finance.(5) Based on the performance measurement, the paper proposes concrete implementation paths. Besides further deepening reform on financial system, we must carry out drastic feforms, including reconstructing fiscal fundamental theory, strengthening the external control mechanism on government budget, setting up constitutionalism idea on tax revenue, establishing the public choice mechanism of voting-by-hand and voting-by-foot, forming network-style and parallel-type division system among politics, economy, society, and among government, market, civil society. The above implementation paths point out a more macro and long-term direction for fiscal reform in the future to establish modern fiscal regime and to implement the strategic mission that finance is the foundation and an important pillar of state governance.The value of this paper lies in: in theory, it returns back the original meaning----finance is a comprehensive category with political, economic and social attributes together, then innovates fiscal theory and enhances its function; in practice, the paper constructs fiscal function system adapted to state governance modernization,to implementing the strategic mission that finance is the foundation and an important pillar of state governance.