Abstract

Intergovernmental fiscal relations is the core of the relationship. Relatively independent of the implementation of three levels of government in Germany's financial system, through the tax system is clearly defined financial management institutions at all levels of jurisdiction. Exclusive tax and share tax co-exist and to share the tax revenue-sharing as well as the main horizontal and vertical fiscal balance combined system so that the federal government in the intergovernmental fiscal relations, according to an advantage, while safeguarding the state and the independent status of local government . Federal government and Planning Commission as an intergovernmental coordination mechanism taking into account the financial relationship between the federal government, state and local government interests, to ensure communication between all levels of government and cooperation to effectively safeguard the interdependence of intergovernmental fiscal relations between the German model. Now the German government for the fiscal balance system reform, will promote its inter-governmental fiscal relations in a more coordinated and stable direction. Financial Relationship is the core element in intergovernmental relationship. The relatively independent financial system for a three-level-government is implemented in Germany and the jurisdictions in different government financial organizations are separated by the tax systems. The federal government takes the advantage status among the intergovernmental financial relationship by the tax sharing system and financial balance system, at the same time the state and local governments have been keeping the independent status. As the coordination mechanism, the federal financial planning commission takes consideration to the interests of various level governments and ensures their communication and cooperation, which has effectively maintained the mode of interdependent intergovernmental financial relationship in Germany. Nowadays, the German government is going on financial balance system reform, which will promotes the intergovemmental financial relationship more safely and fairly