Abstract: While the over-GDP increasing tax revenue remains as one critical topic for economic studies, the extraordinary growth of local non-tax revenue has turned out to be the new hotspot. Targeting at the later issue, this paper attempts to construct a budget decision model under China’s decentralization framework, so as to clarify the interaction between inter-governmental tax competition, public expenditure pressure and the growth in non-tax revenue, with corresponding empirical test based on the provincial data from 2000 to 2011. It has been revealed that the rise in the intensity of tax competition and fiscal pressure would promote the expansion of non-tax revenue, while the increase of revenue self-sufficiency could produce opposite effects. As a sum, policy implication is proposed concerning the reasonable control of non-tax revenue.
Keywords: Fiscal Decentralization, Non-tax Revenue, Tax Competition, Fiscal Pressure
source:Finance & Trade Economics ,No5,2014