On the Influence of Public Fiscal Expenditure Competition over Coordinated Development of Regional Economy and Its Countermeasures

Public fiscal decentralization realizes comparative power for local government and actualizes resources circulation under market-oriented condition. It enables the local government to regulate the circulation of resources with the help of fiscal payment policies. Thus,it makes the economy returns of local regions or sectors. Furthermore,it becomes the appeal to political interests. The effects that public fiscal expenditure competition has on the coordinated development of regional economy could be positive as well as negative. In order to promote the coordinated development of regional economies,it could be defined that government provides basic public services and step forward to reform fiscal decentralization. And it could achieve the goal by means of innovating assessment system of achievement in one’s post,combining shift payment system with regional development policy. It could also attain the expected purpose by setting up corporation and coordinator between governments and some other methods to restrict the negative effect of public fiscal expenditure competition. All these measures promote coordinated growth of regional economy.