The Shortcoming and Improvement of the Allocation of Chinese Fiscal Powers

There are several shortcomings in the allocation of Chinese fiscal powers. China should generally adopt asymmetrical pattern in fiscal powers allocation in the future. Firstly, fiscal revenue powers should be properly divided among multilevel governments and be inclined to central government. Such measure can guarantee central government to keep sufficient financial resource. Meanwhile, fiscal legislative powers should be centralized to central government. In addition, fiscal (taxation) levy powers should be harmonized between two kind of levy organizations. Lastly, each of local governments should be empowered to have relatively independent fiscal budgetary power.