The Influence of Fiscal Decentralization on Local Governments' Financial Expenditure in China

Abstract

China has built financial management system based on tax distribution,but due to the unclear powers and financial expenditure responsibility between central governments and local governments,unrealized independent finance power of local governments,and transfer payment failing to solve the problem of regional financial equilibrium and so on,this system constrains the local governments achieving the advantage in the allocation of resources and meeting the demand of area residents preferences.From view of local governments,this paper attempts to analyze the existing problems in the financial system in China,and puts forward corresponding suggestions.