Study On Local Finance Development Under The Framework Of Public Finance

All levels of finance under the provincial guidance are collectively called local finance. Local finance occupies the foundational status in the national finance. Establishing the comparatively well-off society all-sidedly as the objective of our endeavor is put forward clearly at the 16th NPC. Hence the task of local finance is becoming more and more arduous. How to improve the developmental ability of local finance to expand its strength and to set up the system of local public finance is the focal and difficult point under the framework of public finance.I. China has almost established the framework of public finance adapting to the practical situation with several years' hard work The practice of establishing the framework of public finance in recent years is fruitful. Its basic direction is clear and all the policies are correct. The framework of socialistic public finance with typical Chinese features begins to come into being. But compared with western countries, it's just at the establishing stage. There's a comparative great gap between the framework of public finance and the objective of Chinese financial development. The reasons for this include: Because China is at the critical economic transitional stage, faster as the economy is developing, its economic quality is not high; the economic scale is larger, but the average value is lower; the market is not fully developed, and the governmental function remains to change. The reasons mentioned above have decided the imperfect features of Chinese public finance and the inevitable differences between Chinese public finance and that of western countries.II. Problems existing in Chinese present local financeWith the years' development, the organization of Chinese local finance is becoming perfect; its actual strength is improving and its functions are made full use of. However, there are still some problems which need improving in the course of establishing public finance.First, organizational establishment is being put in order. Yet it still needs perfecting. Second, there exists the developmental imbalance between the regional places. Third, the management system of local finance is not put in good order. The decision-making power of local finance is limited. It's hard to exert the functions of public finance. Fourth, lacking the impact and momentum of regulation and control, the effects of guiding and promoting local finance is not fully reflected. Fifth, the range and structure of the financial expenditure are not rational. Benefits of the capital usage need further improving. There are too many people raised by finance and this takes a big percentage in the financial expenditure. The phenomena of being "offside" and "vacant" are coexisting. The management of financial expenditure is weak. Financial supervision is unsuccessful. The use benefits of financial fund need improving. Sixth, the current management level of local public finance needs further improving. The changes of financial functions and mechanisms have resulted in the lack of weak financial inner management. Functional departments are not well cooperated. The scientific feature of the management is limited. All regulations and management procedures need further perfecting.III. How to perfect and develop local finance under the framework of public financeGenerally speaking, with the many-year development of Chinese local finance, especially since the reform, national economy has been developing very fast; the income and expenditure of local finance has been increasing greatly and the ability of insurance is being strengthened. Market economy is mature. All the rules are in line with the world. So the financial task is becoming formidable. There are many challenges facing us: how to fulfil the task of finance as the national key economic method, how to change the difficult situation of local finance and how to reflect all the functions of public finance completely. All of these challenges need the accelerating development of local finance.1. Change the idea of fi...