Research On Reasons Of Country Fiscal Difficulties In China

This paper introduces the history of china's fiscal system reform, then describes the development and status quo of country fiscal in the reform, after that, we analyze the ultimate reason of difficulty in country fiscal in terms of income and expense.From the aspect of income, the turnover tax as the main tax in china's tax system, the fiscal self-interest in higher government and the financial responsibilities of symmetry in the provincial government failed to implement, the county fiscal problems triggered by these imperfections reform of the tax system have led to the disadvantaged location of country fiscal in the initial distribution; in the limitation of higher government's promotion, local government function proved undemocratic decision-making makes the county fiscal difficult to obtain enough inter-government transfer, and this will result in the disadvantage location of country fiscal in the adjust of distribution. Then from the aspect of expense, China's unique urban and rural household registration system makes the existence of the rural population can not be easily relocated to the city. So the provide of public goods and services for huge rural population become county fiscal's burden; the pressure from higher government, inefficient and "offside" expense, the motivation to achieve better performance eroded the already quite meager income, makes most of the county fiscal's operation hobbled.In this paper, the analyze of difficulties in county fiscal reasons is based on the theory of federalism series of financial concept, through the concept of fiscal constitution, the concept of fiscal democracy and the concept of public finance which have solid theoretical basis, combined with china's situation, we roundly analyze the reason of country fiscal difficulties, so that we can find solutions.