Research On The Correlation Between Fiscalization Of Financial Function And Fiscal Risk In China

A series of achievements which have been made during the process of economic transformation are closely related with the supports of fiscal and financial departments. During different historical and economic periods, fiscal and financial departments play the different roles as well as assume different responsibilities. The financial departments’ status have exceeded that of fiscal departments, with the fiscal function weakening and financial function strengthening, and began to assume the work supposed to be undertaken by the government, which is call the fiscalization of financial function. For example, the financial industry provides seigniorage and balances the budget deficit, supply loans replacing the financial investment, bridge the gap of different districts with different economic levels and so on. The fiscalization of financial function promotes the healthy development of economy, and meanwhile it exacerbates the financial risk, and ultimately aggravating the fiscal risk.In this paper, theoretical analysis, quantitative research and qualitative research together, empirical analysis and normative analysis together are applied to accomplish the goals. First, it gives an analysis to theoretical knowledge involved in the fiscalization of financial function and fiscal risk, including the meaning, manifestations, classification and analysis of the causes about fiscalization of financial function and fiscal risk; Then it makes a detailed exploration about why fiscalization of financial function influences fiscal risk from reasons of history, institution, industry, the reality motivation, and the macroeconomic situation.On that basis, in accordance with the conduction path of" fiscalization of financial functionâ†'financial riskâ†'fiscal risk ", the paper makes a a detailed analysis about every stage of the path; Furthermore, variables are defined, data is collected and relevant indicators are quantified, econometric model are built to carry out the empirical analysis so that to further demonstrate the relevance of fiscalization of financial function and fiscal risk; And finally, according the above analysis, the paper puts forward relevant policy recommendations.