Empirical Analysis On The Impact Of Fiscal Decentralization To The Provincial Government Efficiency

Fiscal decentralization is an important way to safeguard the national tax system in many countries. By controlling the intensity and direction of decentralization, they try to improve the service quality and the efficiency of the government administration. Some countries have set up a complete scientific evaluation target system in order to improve the government efficiency. But few scholars have explored the relationship between the two. take this into consideration, the author attempts to explore the influence of the degree of fiscal decentralization in China on local government efficiency. If the influence is obvious, then China’s fiscal decentralization is helpful to improve on government efficiency. Otherwise, the relationship between fiscal decentralization and the efficiency of local government is more of a digital relationship, and there is no necessary relation.In the National People’s Congress, the Political Consultative Conference of 2015, tax reform has become the focus of attention. Deepening the reform of budget management system, improving the tax system, establishing financial system with powers and expenditure responsibilities adapting mutually are all included in the national finance and taxation reform plan. Research on the fiscal decentralization should also play an important role in the reformation. The public service function of government changes from producers to arrangers, improvement of the efficiency of government, can greatly improve the efficiency of the whole society through the "leverage effect". At the same time, the government administrative range because of the social division of labor, is divided into the economic functions and social functions of public service. This paper can provide a theoretical basis for further financial reform.There are three results about the study. Firstly, for most provincial governments in our country, the overfull scale of invest contributes much to depress the efficiency of government. Secondly, fiscal decentralization is beneficial to the improvement of the efficiency of local government. Thirdly, the regional government have different sensitivity to fiscal decentralization efficiency performance; some provinces are more dependent on the fiscal decentralization in economic efficiency, such as most provinces in west China, and some provinces are more dependent on fiscal decentralization in efficiency of economy development, such as three provinces in the northeast, most provinces in western China, some provinces in the central east area.To improve the efficiency of the government, we should try to make efforts in the following aspects. Firstly, the fiscal decentralization policy changing should focus on investment in public infrastructure projects. Secondly, the provincial government should adjust measures considering their local conditions, Thirdly, the government department should take the scope of government efficiency into account into the fiscal decentralization system. Fourthly, local government should increase the scale of government services by weakening region limit. Finally, government should pay more attention to the power regulation to avoid blind investment, which will cause the waste of resources...