A Study On Financial Relationship Between Local Authorities Under Tax-sharing Institution

The tax-sharing institution reform of the financial system in 1994 hasreconstructed the financial relationship between the central and. localauthorities in our country. Then, the authorities under the provincefollowed this to divide their power longitudinally. But some problems.still exist in the local authorities because of the factual, condition: thefinancial relationship between the local authorities does not operateefficiently or scientifically enough. By employing the theory of politics,economics and administrations, this paper draws on the experiences ofother countries'administration in this field to analyze the historic reformand the present development of the financial relationship-between thecentral and local authorities and probe into the direction: of therelationship by means of historical and, positivism, analysis. Furthermoresome strategies are put forward on how to sort, out the relations on thebasis of our country's achievements,This paper includes five parts. The firSt part expounds not only thesignificance of the selected topic but also the meaning of tax-share, thelocal authorities relationship and the financial relationship between thecentral and local governments. Meanwhile it comments on othercountries'research efforts and proposes the theoretical frame. The secondpart inspects the relationship from the foundation of our country using, thehistorical way, divides it into three parts such as "the high centralization"from 1949 to 1952, "the unified leadership, grade to gradeadministration" from 1953 to 1979, "the responsibility at each level ofrevenue and expenditure" from 1980 to 1993. The third part elaboratesthe conditions of the relationship and the problems by means of historicaland positivism analysis so as to get the reflection of the movementmechanism. In view of the problems exist in the relationship, the fourthpart gives the theoretical support to straightens out the relationship by using the theory of public goods and the division of government powers,tries to divide the powers of the governments, reduces the financial levels,perfects the system of the shift-payment, builds the risk guard mechanismand sets up the financing systems. The fifth part, according to theresearch mentioned above, suggests that the science, standard, highlyeffective financial relationship of the inter-local authorities will certainlyenhance the construction of harmonious society. The harmoniousintergovernmental longitudinal relations will also better the financialrelationship of the inter-local authorities.