Fiscal sociology and innovative framework for fundamental theory of public finance

Abstract

To promote the modernization of state governance system and governance capacity through the reform of fiscal and taxation systems, we must innovate the basic theory of public finance. Fiscal sociology originated from the reflection on the technicalization of public finance and was once regarded as public finance. Embodying the requirement of a return to classical public finance and interdisciplinary research, it demands a combination of grand theoretical framework and grand historical narration. At its core idea, fiscal issues are identified as the root of various social, economic and political issues. Upon analyzing the theoretical tradition of financial sociology and discerning three key issues related to its development, this chapter divides the innovative framework for basic theories of public finance based on fiscal sociology into ten aspects, encompassing methodology, human nature theory, discipline theory, governance theory, revenue and expenditure theory, decentralization theory, development theory, change theory, budget theory, and rule theory. Within this framework, we can integrate existing theories of public finance, so as to gain insight into the relationship between public finance and state governance.