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China’s Central-Local Government Relationship from the Fiscal System Perspective

Received: 13 November 2020     Accepted: 2 December 2020     Published: 8 December 2020
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Abstract

Different fiscal systems may shape different relationships of the central-local government. The transition of the fiscal system is an important perspective to interpret the changes of the relationship between the central and local governments. From the perspective of historical institutionalism, this paper analyzes the changes of China’s fiscal system and the corresponding central-local relationship since the founding of the People’s Republic of China. Since 1949, China’s fiscal administration system has undergone a continuous change process: the fiscal system characterized by “unified revenue and unified expenditure” in the prime of the founding of China, the fiscal system characterized by “fiscal responsibility” in 1980s (the reform and opening-up) and the fiscal system characterized by the tax-sharing system gradually improved. Accordingly, with the evolution of the fiscal system, the central-local relationship characterized by “centralization of authority”, “decentralization and profit sharing” and “grant decision in economy” have been formed respectively. In view of the above, the conclusion is drawn: with the constant reform of the fiscal system, the relationship between the central and local governments is gradually moving from “‘control’ and ‘being controlled’” towards “synergy and cooperation” in China. Finally, they will achieve a benign development.

Published in Journal of Public Policy and Administration (Volume 4, Issue 4)
DOI 10.11648/j.jppa.20200404.13
Page(s) 78-84
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Fiscal System, Central-Local Government Relationship, Changes

References
[1] Wu Yuanlin (2018), Fiscal Reform and the “Double Movement” in China. Beijing Cultural Review, 2018 (05): 86-93.
[2] Zhou Feizhou, Tan Mingzhi (2014), The Central-Local Government Relations in Contemporary China. China Social Sciences Press.
[3] Yuan Chao (2018), The Fiscal Logic of the Changing Behavior of Government: Comments on Interest’s Sake: Fiscal Relations and Local Government Behavior and Central-Local Government Relations in Contemporary China. China Public Administration Review, 2018, (03): 134-151.
[4] Zhang Xiangdong (2020), The Logic of the Change of the Relationship between the Central and Local Governments and Micro Mechanism of Policy Practice—On the Position of “Project System”. Journal of Sichuan University (Philosophy and Social Science Edition), 2020 (05): 185-192.
[5] Lin Shangli (1998). Intergovernmental relations in China. Zhejiang People’s Publishing House, 1998.
[6] Yang Shuming (2005). Financial relationship between governments. Wuhan University, 2005: 100.
[7] Wang Shaoguang (1997). The bottom of the decentralization. China Planning Press, 1997.
[8] Zhang Qiang, Zhan Zhiwei (2019). A Comparative Study on Historical Evolution of China’s Fiscal System. Journal of Dongbei, University of Finance and Economics, 2019 (03): 18-27.
[9] Wang Yuling (2016). From “the tax-sharing system” to “the hierarchical system”: The optimization of financial administrative system. Sub National Fiscal Research, 2016 (02): 16-22.
[10] Jia Kang (2003). China’s financial policy-brief review and analysis of effect. Collected Essays on Finance and Economics, 2003 (01): 26-36.
[11] Fu Minjie (2016). Twenty Years after the Tax-Sharing Reform: History of its development and the way forward. Sociological Studies, 2016, 31 (05): 215-240+245-246.
[12] Wen Lizhou, Zhu Quanrui, Zhou Yanpin, (2020). A Study of Changes in Intergovernmental Fiscal Relations in China. Economy and Management, 2020 (05): 36-42.
[13] Ren Xiaochun, Yan Feifei (2018). The Rules and Introspection of The Cooperative governance between central and local governments in China. Jiangxi Social Sciences, 2018, 38 (06): 195-201.
[14] Luo Weidong, Zhu Xiangyu (2018). The Symmetry of Local Fiscal Power and Expenditure Responsibility and Fiscal System Reforms in China since Tax Sharing Reform. Social Sciences in Nanjing, 2018 (04): 30-38.
[15] Xu Jingyong (2016). The Tax-sharing system, the land-capitalization, the Land-finance and urbanization-transformation. Fujian Tribune (The Humanities & Social Sciences Monthly), 2016 (11): 5-9.
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[17] Xiong Wei (2019). The Local Fiscal Autonomy Along with the Tax Sharing System in China. Journal of Political Science and Law, 2019 (01): 64-77.
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  • APA Style

    Xiaochun Ren, Lingguang Meng. (2020). China’s Central-Local Government Relationship from the Fiscal System Perspective. Journal of Public Policy and Administration, 4(4), 78-84. https://doi.org/10.11648/j.jppa.20200404.13

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    ACS Style

    Xiaochun Ren; Lingguang Meng. China’s Central-Local Government Relationship from the Fiscal System Perspective. J. Public Policy Adm. 2020, 4(4), 78-84. doi: 10.11648/j.jppa.20200404.13

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    AMA Style

    Xiaochun Ren, Lingguang Meng. China’s Central-Local Government Relationship from the Fiscal System Perspective. J Public Policy Adm. 2020;4(4):78-84. doi: 10.11648/j.jppa.20200404.13

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  • @article{10.11648/j.jppa.20200404.13,
      author = {Xiaochun Ren and Lingguang Meng},
      title = {China’s Central-Local Government Relationship from the Fiscal System Perspective},
      journal = {Journal of Public Policy and Administration},
      volume = {4},
      number = {4},
      pages = {78-84},
      doi = {10.11648/j.jppa.20200404.13},
      url = {https://doi.org/10.11648/j.jppa.20200404.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20200404.13},
      abstract = {Different fiscal systems may shape different relationships of the central-local government. The transition of the fiscal system is an important perspective to interpret the changes of the relationship between the central and local governments. From the perspective of historical institutionalism, this paper analyzes the changes of China’s fiscal system and the corresponding central-local relationship since the founding of the People’s Republic of China. Since 1949, China’s fiscal administration system has undergone a continuous change process: the fiscal system characterized by “unified revenue and unified expenditure” in the prime of the founding of China, the fiscal system characterized by “fiscal responsibility” in 1980s (the reform and opening-up) and the fiscal system characterized by the tax-sharing system gradually improved. Accordingly, with the evolution of the fiscal system, the central-local relationship characterized by “centralization of authority”, “decentralization and profit sharing” and “grant decision in economy” have been formed respectively. In view of the above, the conclusion is drawn: with the constant reform of the fiscal system, the relationship between the central and local governments is gradually moving from “‘control’ and ‘being controlled’” towards “synergy and cooperation” in China. Finally, they will achieve a benign development.},
     year = {2020}
    }
    

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    AU  - Xiaochun Ren
    AU  - Lingguang Meng
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    DO  - 10.11648/j.jppa.20200404.13
    T2  - Journal of Public Policy and Administration
    JF  - Journal of Public Policy and Administration
    JO  - Journal of Public Policy and Administration
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    AB  - Different fiscal systems may shape different relationships of the central-local government. The transition of the fiscal system is an important perspective to interpret the changes of the relationship between the central and local governments. From the perspective of historical institutionalism, this paper analyzes the changes of China’s fiscal system and the corresponding central-local relationship since the founding of the People’s Republic of China. Since 1949, China’s fiscal administration system has undergone a continuous change process: the fiscal system characterized by “unified revenue and unified expenditure” in the prime of the founding of China, the fiscal system characterized by “fiscal responsibility” in 1980s (the reform and opening-up) and the fiscal system characterized by the tax-sharing system gradually improved. Accordingly, with the evolution of the fiscal system, the central-local relationship characterized by “centralization of authority”, “decentralization and profit sharing” and “grant decision in economy” have been formed respectively. In view of the above, the conclusion is drawn: with the constant reform of the fiscal system, the relationship between the central and local governments is gradually moving from “‘control’ and ‘being controlled’” towards “synergy and cooperation” in China. Finally, they will achieve a benign development.
    VL  - 4
    IS  - 4
    ER  - 

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Author Information
  • School of Political Science and Public Management, Shanxi University, Taiyuan, P. R. China

  • School of Political Science and Public Management, Shanxi University, Taiyuan, P. R. China

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