The Study On Location Of The Functions Of Public Finance In China

Function of finance, is one of basic contents of the finance fundamental theories, is also the basic role and important accordance for normalizing fiscal activities and establishing the target of fiscal reform in the practices. The practice of reform and opening up indicates, the fiscal functions under the planned economy system have already not accorded with the intrinsic requirement of the development of market economy. Now it reaches common understanding in economic and financial circles that we should change the fiscal functions and step by step build the basic frame of socialist public finance characteristically. Then it is of great significance studying the fiscal functions of public finance in China, which optimizes the structure of financial expenditure, strengthens the fiscal macro-regulation and control, and promotes the development of social economy.This thesis first studies the evolution course of our fiscal functions, brings up that with the development of market economy, fiscal functions should change to "function idea" in accordance with public finance, and determine the intension of fiscal functions. Next using for reference the theory of public needs, of public goods, and of public expenditure, this thesis analyzes the concrete manifestation of our fiscal functions from the angle of market failure, and puts forward that we should define reasonably the fiscal functions under socialist market economy according to the theory of public finance; that is to say, finance has three functions of allocating resources, redistributing income, stabilizing and developing economy. Further analyzes the rational division of fiscal functions between the central and local governments. Then this thesis raises it is the objective need of changing fiscal functions to optimize the structure of financial expenditure, to build and perfect social security system; and that it is the system ensure of regulating fiscal functions to innovate the realization form and to deepen the reform of fiscal system.