The paper dispensing device includes a main spindle, an axle, two end pieces, and a cutting member. The main spindle has a compartment. The axle is rotatably supported inside the compartment. The end pieces are positioned adjacent to the two ends of the axle, respectively. Each end piece has an eccentric opening through which an end of the axle is threaded. A ring groove is configured around the eccentric opening along an inner side of each end piece. The cutting member includes a blade, a cutter axle, two arms extended outward slantwise from the cutter axle's two ends, and two guiding elements at the arms' outer ends moveably housed in the ring grooves, respectively. As the main spindle spins, the cutting member rotates along with the main spindle and its blade is extended out or retracted into the compartment as the guiding elements move along the ring grooves.