Research On The Structure Of Local Fiscal Revenue And The Improvement Of Government Governance Ability

At the beginning of the third plenary session of the 18 th CPC central committee,the party clearly stated that "the overall goal of comprehensively deepening reform is to improve and develop the socialist system with Chinese characteristics and to promote the modernization of the country’s governance capacity and system." Local government governance is the implementation of state governance.The promotion and realization of the overall goal of comprehensively deepening reform cannot be achieved without the improvement of local government governance capacity.Finance is the foundation and important pillar of national governance,and the form and structure of fiscal revenue will have a far-reaching impact on the improvement of government governance ability.Therefore,it is of great practical and theoretical significance to explore the relationship between local government’s fiscal revenue structure and the improvement of government’s governance ability.Based on the research of the fiscal revenue structure and the improvement of government governance capacity,this paper firstly analyzes the mechanism of the impact of different income forms such as tax revenue,non-tax revenue and transfer payment on local government governance capabilities from the perspective of fiscal sociology.Then,the paper makes a statistical description and analysis of the changes in the fiscal revenue structure of local governments and their impact on the improvement of the government’s governance ability,and intuitively shows the relationship between the fiscal revenue structure and the improvement of the government’s governance ability.Then,the panel data of 284 prefecture-level governments from 2002 to 2013 were used to empirically test the impact of the form of fiscal revenue source and income structure of local governments on the improvement of government governance ability,and the following conclusions were drawn:First,the greater the proportion of tax revenue,especially from the private sector,in the fiscal revenue,the greater the government’s dependence on the society,and the greater the government’s attention to the social needs.It will continuously improve public services in return for the "quasi-voluntary compliance" of taxpayers,so as to improve the governance capacity of the government.Second,the improvement of non-tax revenue on the governance ability of the government needs to integrate its positive and negative effects on the economy and society.Third,because the transfer payment is not "earned income" of the government,it reduces the incentive for local governments to improve the governance environment and improve the governance level through the transfer payment fund.Therefore,the higher the proportion of the transfer payment in the fiscal revenue,the worse the governance ability of the government.Finally,the thesis puts forward relevant policy Suggestions based on the research topic and conclusion.Compared with existing research,the innovation of this article lies in the perspective of selecting the fiscal revenue structure,which can more fully explain the impact of the source of fiscal revenue on the improvement of local government governance capabilities,and the use of prefecture-level government data also fits the city.As a key node that directly connects with society,the county-level government has a more prominent governance role.The shortcoming is that the specific impact path has not been analyzed and verified,and only the possible impact mechanism has been analyzed from a theoretical perspective.