Construct Public Finance System and Expenditure of Public Service

Abstract

Construction of the public finance system provides financial security for public services,such as education.The financial expenditure data of 1998-2006 Year National Statistical Yearbook shows that,local governments did not increase public finance in the proportion of public service,but reduced the expenditure of public finance in the proportion of public services.This paper points out that this phenomenon is attributed to Fiscal Decentralization,one administrative system,M-type organizational structure and pressure-type system.Thus improving the fiscal decentralization reform,setting scientific and reasonable performance index,appropriately extending the term of office of local officials,and finding the balance between one man government administrative system and the central balance of public finance shall be the system of protection for the expansion of public finance in the proportion of expenditure on public services.