Abstract

Public finance is the foundation and important pillar of state governance. One of the goals of promoting the construction of modern fiscal system from the perspective of modernization of state governance and governance capability is to establish a central and local public financial management system and decentralization relationship with clear powers and responsibilities，financial coordination，and regional balance. This book deeply studies the historical context，reform priorities，and future direction of the changes in the fiscal decentralization relationship of Chinese government. From the perspective of the national governance concept of the financial transformation of the big countries，and based on the profound changes and complicated situations of the current international economic and political situation，this book analyzes the changing trend of fiscal decentralization in Chinese government under the guidance of modern fiscal system construction to strengthen financial services to state governance，and to categorize and discuss the determinants of the current fiscal decentralization relationship between China’s central regions and the reforms. In order to further strengthen the overall development of the national public financial overview，it proposes corresponding policy recommendations for better and faster promotion of comprehensive economic and social development. The chapter structure is as follows：

Firstly，the book reviews the basic theory of the transition of intergovernmental fiscal decentralization under the trend of decentralization，and proposes the basic framework and core content of the inter-governmental fiscal decentralization relationship based on the concept of state governance. Secondly，the research will be based on the operational mechanism of intergovernmental fiscal decentralization defined in the previous chapters and the particularity of Chinese-style fiscal decentralization，and rebuilding fiscal decentralization indicators based on financial resources. From the perspective of spatial analysis，this book studies the spatial pattern and influencing factors of Chinese provincial decentralization under the theory of state governance. With the help of several types of fiscal decentralization indicators that have been constructed，the threshold panel model is used to empirically estimate the optimal fiscal decentralization level that is conducive to economic growth. Finally，based on the empirical conclusions，To analyze the direction and focus the direction and focus of decentralization reform are discussed.