The Relocation Of Local Public Finance Function Based On The Transform Of Economic Development Model

China’s economy has experienced30years of rapid growth, but it’s based on theextensive economic growth mode which are government-led, investment-push andexport-oriented, the unsustainability with the extensive economic growth mode isincreasingly evident, Resources and energy shortages, rising costs, ecological damage,the widening gap between income distribution, urban and rural areas and othersignificant imbalance are increasingly constrained the economic growth, Currently,the “offside”、“absence” of the local fiscal functions are tied with the extensiveeconomic growth mode. From a financial function theory,local finance primarilyperform the function of resources distribution, due to lack of whole macroeconomicpolicy and free movement between districts, the functions of economic stability andincome distribution functions are relatively weak, as the factor of history, the realfunction of resources distribution deviates from its original role, it more focus on thedevelopment of economy but not supporting the basic public service. So the extensiveeconomic growth mode has something with the deviation of the financial functions,only we make it clear that the relationship of market and government, we can makethe economy mode change.This thesis is based on the theory of fiscal decentralization, then with it todiscuss the content of local financial functions, with the analysis of how to form thiskind of extensive economic growth mode and the new content of intensive economicgrowth mode, the paper divides the clear functions of local finance which are asfollows:(1) Straighten out the relationship between government and the market, thelocal government gradually withdraw from the economic sphere, building local publicfinance, focusing on the provision of public services, and promoting the equalizationof basic public services;(2)In the meantime adjusting the relationship between centraland local government, rational distributing powers, ensure financial resources andpowers to match the performance of the central government and focus on maintainingpolitical power, economic development and social coordination functions, localgovernments should focus on performance of public services and regional economicdevelopment functions;(3) Intergovernmental division of functions should alsoinclude local government division of labor between the financial functions,ensuring the fulfillment of basic functions of government.