The Public Finance Reform in China from the Perspective of Fiscal Decentralization

The paper puts forward the theory of fiscal decentralization and the superiority of the basic point of view by illustrating the theoretical development of the financial decentralization of the sort sequence. China's financial system is at a critical stage of reform and development. Between central and local governments into financial terms and the exercise of reasonable design of the system still exist,issues such as lack of incentive mechanism. The West by studying the theory of fiscal decentralization at all levels of government will help improve the financial efficiency and effectiveness of behavior,and promote national economic and social development.