Thoughts On The Reform Of Rational Financial Administration

Finance is one of the important compositions of national economy .As economic system reform is being executed further in China, problems in current financial administration system appear more and more outstanding .As a result, a scientific, standardized and systematic financial system of public administration is needed urgently in order to fit the demands of socialist market economy system and promote the rapid, favorable and coordinated development of national economy.Main problems of the financial administration system in China nowadays existed:(1)On the aspect of revenue On the one hand, absolute scope of the state financial revenue is increasing fairly rapidly, while relative proportion is fairly low, including the proportion of the state revenue to GDP and the proportion of the central revenue to the whole state financial revenue, on the other hand, the financial revenue lacks in a supervision system, the management of extra-budgetary fund is in disorder, showing in those non-tax revenue, such as varies of fund and extra-budgetary fund ,being free from the financial budget supervision system. During the state enterprise reforming courses, the operating revenue of state assets is seriously losing.(2)On the aspect of expenditure The scope of financial expenditure is increasing fairly rapidly as well as the scope of financial deficits; the structure of financial expenditure is unreasonable, the efficiency of fund usage being hard to increase First, the current system of transformation-pay and government purchasing being not scientific and standard ,shows in general transformation-pay conserved from the old system, including not only the subsidy from central committee to locality, but also locality to center, and the decision of amounts having no scientific foundation. So it is more freely and not standard enough. Second, government at all levels has no definite financial powers and expenditure responsibilities, the problem of financial function "loss" and "exceed" is rather serious. Third, the government purchasing system belongs to extensive management.(3)On the aspect of budget administration Current double-budget, zero-based budget and department budget being unequal, having no material content and needing further improvement.Therefore, adjustment, reform and improvement should be the current financial system so as to elaborate the economic of financial macro-adjustment and control. Reforms should be done well mainly in the following aspects:(1)Deepening the reform of "fee in tax" and perfecting tax-reduction system; improving the system of tax- distribution. (2)Amplify financial function, accelerate the course of "fee in tax", standardize the extra-budgetary fund and all kinds of charging behaviors. (3)Further standardize the system of tax distribution, dividing scientifically the power of finance and affairs between the Central Committee and Locality;(4)Optimizing the structure of financial expenditure and boosting the efficiency of fund usage; improving rapidly the system of financial-transformation expenditure and government purchasing. Enhancing the management of budget revenue and expenditure, hardening the budget restrict and setting up scientific and standard budgetary system of governmental public expenditure.