| Summary: | 碩士 === 雲林科技大學 === 會計系研究所 === 97 === Many studies indicated that the degeneration of fiscal shortage of local government stems from the system of co-exist advantage, in that the process of competing budgets with their rivals has caused the government’s agency problem. Politicians bring up tax cut and social welfare policy to please their voters. That cause shortage of finance resources, and the local government have to cope with this situation through liabilities. It turns them into a vicious cycle. Under this circumstance, the fiscal problem for the local government has been worsened continuously. This is the worst scenario of the public property.
In order to solve the local public finance problems, there are some suggestions：(1)The central government should make a set of strict prevention policies. (2)The election of local stratum, such as township, should be abandoned. (3)Local governments should draw a framework of liability management in order to eliminate the possibility of bankruptcy. (4) When the increase of public expenditure or the decrease of fiscal revenue happened, the government should raise the funds or expand financial resources. As a result, the research and development and the synchronization of fund raising can be established. Therefore, the budget planning can be implemented, the consistency of the law can be reinforced and the fiscal responsibilities can be strengthened.
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