The Analysis In The Way Of Deepening The Finance System Reform Of Zhongshan

Finance is the core of government economy, while public finance is the production of market economy. Due to its comparatively deeper extent of market economy implementation, the Pearl River Delta has a good economy foundation to establish public finance management system. Based on summarizing the present situation of the finance system reform of Zhongshan, this paper initiates a series of tactics and measures on deepening finance system reform and constructing public finance management system in order to promote the development of the finance reform of Zhongshan, and accordingly probe into a way of local finance system reform in China. â… . Analysis on finance operation of Zhongshan. In recent years, Zhongshan has seen a fast growth of finance revenue, rapidly expanded expenditure scope and further strengthened coordination between finance operation and economic growth. But we still has unresolved main problem threatening finance operation such as slowing-down finance revenue growth; unbalanced regional economic growth; fast increase of governmental administration cost; too wide a range of finance provision; unbalanced relationship between administrative power and financial power; decentralized government financial capacity due to uncompleted management system of non-tax revenue item, and so on. It is essential to reform current finance system, which is not only objectively demanded by building a harmonious economic society, but also help to promote resource optimization and adjustment, enhance effectiveness of fund application and make further improvement of finance distribution. â…¡. Present situation of the finance system reform of Zhongshan. Finance is authorized the function of resource allocation, revenue disposition and stabilizing economy. The main function of government is to provide public product and service in order to meet the common needs of the whole society, which undoubtedly form a certain relation within distribution and finance management mode in accordance with the needs of market economy, and based on the above factors, public finance comes into being. Public finance means a kind of governmental distribution act through which the state provides public service to the market economy. Public system reform is founded and targeted on establishing a general framework of "Public Finance"in a scientific manner. In recent years, Zhongshan has initiated several steps on finance system reform including promoting departmental budget; improving governmental procurement; adjusting finance disposition relation at the municipal level and township level and streamlining the scope of finance provision. While there are still factors threatening finance system reform: Firstly, insufficient financial capacity hardly meets the needs of basic expenditure; secondly, the finance management mechanism itself is still unsound; and thirdly, the current legislation and regulation related to finance cannot be well implemented. According to the present situation and trend of the economy and society development of Zhongshan, and drawing on the experience of the counties enjoying a comparatively developed market economy, we set our target of public finance system reform on establishing a public finance framework in accordance with the needs of socialist market economy, in order to practice a better function of finance in terms of providing public product, promote fair distribution and micro economy stability. â…¢. Research on tactics to further deepen public system reform. To establish public finance system framework is not only demanded by socialist market economy, but also a key measure on effectively implementing finance policies of China at present. To establish a sound public finance management system at local level, the essence of which includes: 1. To establish a public finance revenue system in which tax revenue plays a leading role and regulated non-tax revenue the supporting role. As tax revenue has been the most important resource of finance revenue, we must impose our effort on tax-collection by completing the following aspects: adhering to the strategy of "Industry strengthening city capacity"andintensify development of value-added tax and income tax of enterprise; supporting the third industry and maintain the rapid and stable growth of sales tax; develop domestic enterprise and enterprise with foreign investment and accelerate effort on individual income tax-collection, especially on the collection at the rich level. Governmental non-tax revenue is one of the important forms of national income redistribution. To push forward the reform of governmental non-tax revenue supervision system, efforts should be made to specify the scope of governmental non-tax revenue, strengthen governmental non-tax revenue budget administration, and create administration and information platform, tap revenue potential and nurture new revenue growth point by giving priority to payments revenue for use of state-owned resources or assets. 2. To establish an expenditure system with public expenditure as the mainstay. With social public requirement as the criteria, we will make further adjustment on optimizing finance expenditure frame. Government finance investment emphasis should be shifted to general public expenditure. We will upgrade the process of reform within government institution and mass organization, and encourage non-governmental organization to shoulder the responsibilities on public service and social course; We will expand educational expenditure, with government expenditure as the mainstay, to ensure citizen's rights to accept compulsory education; We will expand government expenditure on medical system restructure and public health to support the system of disease prevention and control; We will establish social security system throughout the city. With regulated administration as the criteria, we will put forward three reforms to promote the innovation of expenditure system. First, push forward the principle of departmental budget at full scale and make tense control on the budget; second, intensify effort on pushing forward the centralized treasury payment system at all levels carried out by making overall expenditure supervision through single treasury account; third, continue to improve governmental procurement system, extend finance supervision from currency mode to material mode for the purpose of saving money, optimizingresource allocation and restraining corruption. 3. To establish a macro-control finance system with stable and harmonious development of national economy as the target, in which finance policies and means such as budget, tax revenue, interest discount and payment transfer will be comprehensively applied. We will enforce macro-control function of finance and make good use of the guiding function of government fund, intensify effort on nurturing social service business and estate business that make major contribution to tax revenue by means of interest discount, payment transfer and funding; develop domestic economy and industry with high and new technology and accelerate finance support to economic growth. We will adjust the disposition of finance revenue and gradually improve finance management system at township level. Financial power and administrative power should be unified and a reasonable identification should be made between administrative power of government at all levels and the scope of finance expenditure; we will appropriately adjust the division percentage distributed individually to municipal level and township level and expand the division scope of revenue; regulate payment transfer classification system and ensure a harmonious development of regional economy. 4. To establish a pubic finance management system with maximizing macro economic benefit and social benefit as the target, finance law as the foundation, finance revenue and expenditure as the center, in which modern and scientific means and regulated system will be applied. First, a new type of finance supervision system will be established to raise awareness of corruption prevention, boost construction of democratizing supervision, enhance internal supervision mechanism and build up external supervision mechanism including legislative supervision and NPC supervision; second, we will establish achievement evaluation guideline system and bring it into budget making and supervising process; third, we will enhance sincerity awareness in accounting business, establish regular spot-check on accounting information system, regulate accounting-related behavior of enterprise and enforce supervision on accounting agency; fourth, intensify effort on finance information construction, speed up the process of...