Research On The Influence Of Fiscal Self-Sufficiency On The Public Service Supply Level Of Provincial Local Government

Since the reform of the tax sharing system,China’s financial power has been continuously concentrated upward and the administrative power has been continuously moved downward.The mismatch between financial power and administrative power has led to huge financial pressure on local governments.When the financial funds are certain,local governments are more inclined to use the limited financial funds in economic public services that can drive economic development,while the supply of non economic public services is lack of power.Under this background,from the perspective of financial self-sufficiency,this paper comprehensively calculates the supply level of economic public services and non economic public services of local governments through entropy method,and deeply analyzes the impact of financial self-sufficiency on the supply level of public services of local governments.This paper uses the output indicators of transportation,communication and energy in 31 provinces in China from 2007 to 2020 to comprehensively calculate the supply level of economic public services,and uses the output indicators of education,medical treatment,social security,culture and environment to comprehensively calculate the supply level of non economic public services;With the help of Stata software and multiple regression model,this paper empirically studies the impact of financial self-sufficiency of provincial local governments on the supply level of local economic and non economic public services;It further studies the heterogeneity of the impact of fiscal self-sufficiency on the supply level of local economic and non economic public services under the different levels of economic development and official assessment mechanism.The results show that from the national level,fiscal self-sufficiency can significantly promote the improvement of the supply level of economic public services and non economic public services;In the provinces with higher economic development level,fiscal self-sufficiency has a positive impact on the supply level of economic public services and non economic public services,while in the provinces with lower economic development level,fiscal self-sufficiency only has a positive impact on the supply level of economic public services,and the impact on the supply level of non economic public services is not significant.In the provinces where the assessment of officials focuses on economic construction,local governments will be more inclined to improve the supply level of economic public services;In the provinces where the assessment of officials focuses on the construction of people’s livelihood,local governments are more inclined to improve the supply level of non economic public services.Based on this,this paper puts forward specific policy suggestions to improve the supply level of local public services from the aspects of improving the financial selfsufficiency of local governments,implementing differentiated transfer payment strategies,improving the weight of livelihood assessment indicators,and clarifying the powers and expenditure responsibilities of governments.