Research on the Allocation of Inter-governmental Fiscal Capacity

Author: Xin Bo
Publisher:
Publish Date: 2005-12-01
Features: This book has made research progress or innovations in the following aspects: First, starting from the theory of fiscal decentralization, it provides a scientific and clear definition of the core concept of fiscal capacity. Second, it analyzes and evaluates the reform of China's fiscal system since the founding of the country, especially the 1994 tax division system reform, from the perspective of fiscal decentralization. Third, it uses econometric methods to estimate the approximate value of a reasonable tax burden rate in China in the near future. Fourth, it analyzes and judges the issue of the increasingly expanding scale of China's government debt. Fifth, it analyzes the reasons for the declining fiscal capacity of local governments, especially at the county and township levels, from the perspective of fiscal decentralization. Sixth, it analyzes the correlation between the tax division system reform and the fiscal capacity difference among provincial governments, as well as the correlation between the fiscal capacity gap among provinces and economic growth, based on indicators for measuring fiscal capacity differences among provincial governments. Seventh, to address the current imbalance in fiscal capacity between governments in China, the author proposes strengthening reforms both horizontally and vertically, and also outlines the general framework for further tax system reforms and the design of a fiscal capacity equalization transfer payment system. This book is revised based on the author's doctoral dissertation. This book only explores the allocation of fiscal capacity between governments in China based on fiscal decentralization, conducting preliminary research and laying a certain foundation for further studies.