The Research Of The Influence Of Fiscal Decentralization Of Local Government’s Expenditure Behavior

The Tax Distribution Reform was carried out in China in 1994,.It remarked the official implementation of fiscal decentralization system.This means that the financial authority and powers were, to a certain extent, isolated. Local governments get more autonomy of decision-making power, so they greatly inspired the enthusiasm to develop the local economies which made the fiscal expenditure of local government can better meet the actual needs of the local residents.In this case,it can achieve the maximum benefits of local fiscal expenditure. Based on the discussion of domestic and foreign fiscal decentralization theory and the discussion of local government spending behavior theory, combined with data of local government fiscal expenditure from 1994 to 2012, it analyzed China’s fiscal decentralization status and the change of behavior of local government in detail.It also tested the effects of fiscal decentralization to the structure and scale of local finance through empirical verification.At last, on the basis of the empirical result and combined with China’s actual conditions, it put forward suggestions for reasonable decentralization and improving the efficiency of expenditure spending.