The Study About Soft Budget Constraints Of Local Government Based On The Distribution Of The Budgetary Power

Soft budget constraints of local government is such a phenomenon that in the process of local government budget, audit, execution and supervision, if the behavior of local government budget cannot be subject to the original budget constraints, but through a variety of ways beyond the budget resources even for the local government or local government officials benefit to gain more disposable money. Soft budget constraints of local government can lead to inefficient allocation of resources, increase the size and risk of the local government debt, make many negative influence of unfair competition like corruption and rent-seeking and between local governments and departments. In order to eliminate the negative effects of the soft budget constraint of local government, to harden budget constraint, the first thing you need to study how the local government is the soft budget constraint. Behavior of local government budget is, in fact, the budget for all budgets the extrinsic manifestation of interaction, so the budget power structure is the internal factors influencing the budget act. From vertical and horizontal two paths, this paper analyses the local government budgetary power distribution in our country, local government budgets in vertical path right to income poor autonomy, high spending power controlled degree; Horizontal path NPC budget approval and supervision are built on stilts, citizens lack of budget supervision, budgets most focused on administrative department, in local government budgets and internal fragmentation was prospective budget department and department. The mechanism of checks and balances the rights of budget allocation can’t lead to random breakthrough of local government budget constraints, the formation of soft budget constraint. Refactoring budget participation rights allocation structure formation mechanism of checks and balances between the parties is the basic way for hardening budget constraints of local government.