Study On The Reformation Of Local Fiscal System Under Public Service Perspective

Several fiscal reformations have been tried to adjust the relation between center government and local government, but the effects was not as good as expected, the traces of the old fiscal system become the barriers of the development of local fiscal. Since traditional fiscal system gradually fade out, at the same time, the new fiscal system that adapts to the development of the market economy system has not yet been established. The outcome led to the lack of fundings, especially local governments. One the other side, there are lots of fiscal problems restrict the development of the local economy as well as public services supplement, such as irregular transfer payments, unreasonable division of tax and property, which are quite contrary to the goal of building a harmonious society. Local fiscal is as a basic link of fiscal system, its operation has a direct impact on the quality or the stability of national finance and coordination. Therefore, this article is under a realistic point of view, according to our county's reality to describe the status of the fiscal system from the start, then analyze its causes and absorb advanced theory, put forth suggestions to resolve these problems.The article is divided into four parts:The first part is an explanation of local fiscal theory. First of all, put forward several theories and define connotation of the public service-oriented government and public service finance. Then highlight the relationship between the two to illuminate the necessary of the local fiscal reformation.The second part is the evolution of local fiscal and its problems. This part first introduce China's fiscal reform from opening up to the current situation of new century, describe the evolution process of fiscal reformation, then point out the problems: irregular transfer payments, unreasonable division of tax and property ,the impact of canceled agricultural. At last analyze the problems and causes of local fiscal and the reasons of these problems including the inherent limitation of fiscal system, much more government layers, faultiness of duties and property, lack of the revenue and supervision.The third part is about international comparison and experience. Three western developed countries, America Germany Japan have been chosen to be compared, in order to learn the division of rights and duties, transfer payments, and taxes from the three countries.The fourth part is solutions to resolve local fiance. Including the establishment of a sound made with the power of the financial system to adapt to reduce the financial level, the establishment of a standard financial transfer payment system and improve the base tax system to enhance the policy-oriented fiscal services, to strengthen the budget management reform.