Research on the Institutional Transition and System's Innovative of China's Fiscal Decentralization

Abstract

China's fiscal decentralization reform has gone through a strange process of unitive-segregative-unitive,it has had been institutionalized starting from the 1980s,Although the whole fiscal reform is a gradual process,the tax sharing reform in 1994 implemented by the central government is distinctively different from former reforms such as fiscal sharing and fiscal contracting,the boundary is fixed in finance power and finance affair.As viewed from the institutional transition of fiscal decentralization,there are many problems:central authority and local authority can game constantly,obvious path-dependence in institutional transition;randomness and order is reversed in decentralization;the contradiction between fiscal decentralization and administration centralization of state power;transfer payment do not standardize and so on.Therefore,the system of fiscal decentralization should be innovative from many aspects in china.