Research On The History And Reform Mode Of The Fiscal Management System In China (1949-2009)

As pointed explicitly in the Report to the Seventeenth National Congress of the CPC, the Chinese government should further deepen the reform of present fiscal and tax system and improve the public financial system, under the guidance of science development conception. Meanwhile, as indicated in《The Outline of the 11th Five-Year Plan for National Economic and Social Development》, the fiscal transfer payment system of the central and provincial governments should be promoted, and the fiscal management system of the local governments should be reorganized; for places where are under satisfied condition, the management system of "Province-to-County" directly could be put into practice, ensuring the equalization of basic public services step by step. It is the inevitable choice for the fiscal system under the market economy nowadays to build an impartial fiscal and tax system, to establish a reasonable scale of fiscal expenditure, and to constitute an effective and efficient public finance management system. For such a crucial time when the reform of fiscal management system in China has arrived, the further reform must be conducted on the basis of self-reflection on former experience and lessons. Hence, this dissertation is written under the above background.Given an overall observation on the history of the reform of Chinese fiscal management system, the frequent alteration of the system is closely associated with the whole economy management system and the change of economic and political situation. The financial power has gone through achievements and setbacks between "let out" and "draw back", or between "centralization" and "decentralization". From the highly centralization and unified collection and allocation of funds by the state in the period of early Republic of China, to the independent fiscal system at the initial stage of the reform, then to the system of tax distribution with the establishment of the socialist market economy system, and finally to the present multi-level fiscal system within the framework of public finance, the above history is the reflection of the internal law of the development of history. Therefore, with the purpose of providing historic experience for the further reform and innovation of the fiscal management system, this dissertation would begin with the analysis of the fiscal management system from the historic development aspect and the exploration of the evolutionary character and rules on finance allocation between the central and local government. Furthermore, it would penetrate into the defects and problems of the existent fiscal management system in order to find out the internal reason for these problems. Additionally, the dissertation would develop its research from the viewpoint of the distribution of proceeds from state-owned assets which accounts for the main source of the financial revenue, and then implement the game analysis on the allocation of the after-tax earnings from state-owned assets between the central and local government through the Stackelberg game model.Finally, on the basis of the historic analysis, the penetration of defects of the fiscal management system, this dissertation would make further innovation on the present fiscal management system and provide policy recommendation for the reform process.