Abstract

This book studies some issues on fiscal decentralization in the process of China's economic development, focus on public finance management since the tax-sharing reform in the 1990s. At this stage, the central and local governments below the provincial obtained ideal policy effects on fiscal decentralization reform. As one of the endogenous variable of economic development, the fiscal decentralization is successful relatively in improving efficiency supply public goods and service.

However, the reform of fiscal decentralization in China has been unable to meet the needs of economic development at this stage. From the progress of the reform, fiscal decentralization lags behind the rapid economic growth, leads to many uneven development objective facts between the central and local governments. From the performance of the reform, fiscal decentralization has multiple incentive not only focus on efficiency, also concern on allocation fairness, especially on interest selection in the case of the financial income and responsibility does net match, not only remain stable and sustainable economic growth, but also face the social and economic contradictions by many local-self-interesting behavior, in the above aspects, the existing fiscal decentralization policies are barely satisfactory.

It is objective evaluation that success and lessons coexist in China's fiscal decentralization reform. The urgent need to face show that on the one hand, fiscal decentralization reform ignore allocation fairness while focus on efficiency in China, high cost while pursuit of growth, welfare and allocation institutions shortage while keep economic growth. On the other hand, there are too more incentives but less supervision of central and local government, especially, in order to achieve personal promotion, some local officials pave the way for themselves by public finance which even led to corruption, rent-seeking and other social issues.

This book shows some work we did on the subject from the perspective of academic research. It just only touched tentacles of the related content_on which our point of view or policy proposal. The slight contribution we do hope is that scholar would have possible inspiration or gratified smile occasionally after read it.