Pondering Over The Current System Of Fiscal Decentralization In China

At the background of international fiscal decentralization, this text explores China's reformsof decentralization, especially the reform of 94' tax-sharing system which took place afterestablishing the socialist market economy. After the reforms and opening up, China's economywas developing fast and healthy, to which the reforms of fiscal decentralization contributedmuch. However, circumstances change, the malpractices of tax-sharing system are even moreexplicit, which causes the local fiscal problems, especially for the basic units. Moreover, theagricultural tax which is the main part of fiscal revenue for basic units will comprehensively stoplevying in 2006, which would aggravate the fiscal problems of basic units. A new session of taxsystem reform is on its way, it is necessary for us to analysis the problems of the current systemprofoundly once again, basing on the macro conditions, and to find out the key point of reform,which would perform an significant function to the coordinated development of economic andsociety later on.Analyzing and solving problems are the main parts of the text. First, through chartsanalyzing, comparative analyzing and the game analyzing author points out the problems of thetax-sharing system;then, basing on the concrete conditions of economy and society in China,"11th Five-year Planning", the Western theories and international experiences of fiscaldecentralization, author gives some reform proposals, in which perfecting the legal system,improving the political system and regulating the fiscal institutions are at the core.