A Study On The Relationship Between The Central And Local Financial Power

The finance rights and authority rights between central and local governments, is the core issue between them. It is very important for high efficiency of government’s function and the development of the economic society to build heathy finance rights and authority right between governments at all levels. Especially whether it matches for local government’s finance rights and responsibilities, is of great significance for the good operation of a government.There are some problem between governments at all levels that the finance right is continuously delivered to upper level and authority right is continuously delivered to the opposite direction. Therefore, the basic-level governments are responsible for too much authority rights and heavy financial burden. This paper will find the problems existed in authority rights and responsibilities spent of local government and provide solutions through studying the relation between the central and local government. First of all, it states the theories which studies the relationship between the intergovernmental financial rights and authority rights of the market economy, the functions of the government and western fiscal decentralization, and then analyzes the financial relationship between central and local governments from different periods in the history of China and different stages of development after the founding of China, which is totally different comparing with western developed countries. It finally analyzes the problems existed in the local government powers and responsibilities spent division and countermeasures are put forward.Through research above, it also provide solutions and advice for local government powers and responsibilities spent division. Firstly, rely on the legal protection and improve the relevant laws and regulations to divide boundaries for government, market and society, and determine the authority rights and responsibilities spent for governments at all levels. Secondly, promote the transformation of government function, clarify government acting range and improve the efficiency of government administration. The last advice is to improve the construction of related system and mechanism, and provide guarantee for implementing matching of the system of local government authority rights and responsibilities spent.