Donors and UN agencies have introduced a joint agenda for local governance and decentralization. JPLG which has been operational in Somaliland, supporting decentralization. Nevertheless. If the performance of government institutions and democracy is good, then the quality of good use of fiscal decentralization will increase. Alexeev amp Mamedov, 2017 and local. Fiscal decentralization generally refers to the decentralization of taxing and spending powers from control of central government authorities to subnational government authorities. In a well-decentralized system, local governments have considerable powers to mobilize resources, through fiscal authorities accompanied by strict tax regulations. The current industrial structure in China needs to be adjusted to create a new development model and promote high-quality economic development. Based on theoretical analysis and provincial panel data, we empirically analyzed the impact of fiscal decentralization and regional innovation on industrial structure. Across the world, recent legislative reforms share the goal of increasing the fiscal autonomy of lower levels of government. The objective of this policy is to reduce the VFI vertical fiscal imbalance and improve the efficiency of the provision of public services, through increased accountability of local politicians. The aim of this article is to evaluate the public sector in China's transitional economy, with the aim of testing the validity of a variety of hypotheses, namely those of Brennan and Buchanan 1980, The Power to Tax: Analytical Foundations of a Fiscal Constitution, CUP, Cambridge, Oates-Wallis 1985, American Economic Review, version 75 4 748-57,