Ethnic Regions Financial Management System

Financial institutions in ethnic regions have their own particularity. It is decided by the special geographical conditions, religious identity and characteristics in the development of economic and social stage in ethnic regions. The reform of tax allocations which take"unified system"as its guiding ideology, lack of knowledge in the special ethnic regions system since the founding of our country, has ignored the market economy focusing on survival of the fittest-oriented and put emphasis on competition. So this system can not solve the shortcomings that ethnic regions are lagging behind.On the basis of assessing the status of national regional financial resources, relevant powers allocating with regional economic development and financial resources during governments, starting with promoting equality for public services actively, and which can form a scientific and rational fiscal system in ethnic region and achieve the State Council's strategic plan.Meanwhile, the financial transfer payment system, which in accompany with the reform of System of Tax Allocations, Compromise on many obstacles for the vested interests, take promoting the reform of Tax Allocations system as the primary principle of designing the transfer payment system, put reducing resistance to change on the first place. When design transfer payment, use the "base method" which characteristic is protecting vested interests, rather than the "factor method" which characteristic is equity.This paper takes Inner Mongolia as an example, study on how to establish a scientific financial system in ethnic regions. Through the review of the fiscal management system in ethnic regions and evaluation, on the base of analyzing its difference and particularity this thesis tries to improve the Central and Inner Mongolia's financial system settings. The paper also makes some relevant policy recommendations, focused on how to improve financial management system that make income financial resources and powers to match, and how to further improve the transfer payment system, which provide a useful path to other relevant study. This article is divided into seven parts.The first part is Introduction. First, review the theory of the financial management system by domestic and foreign financial scholars. Then introduce the paper's logical structure, research path and methods. Finally, point the paper's innovation and shortcomings.The second part is the theoretical basis for this article. It mainly involves the theory of Fiscal Decentralization, Local Public Goods Theory and Regional Economic Theory.The third part is the review of financial management system in ethnic regions and evaluation. Through the review and evaluation of financial incentives policy in the national minorities region since the founding of New China, the author proposes its positive impacts and exiting problems in the process of economic development in the ethnic regions.The fourth part analyzes the allocation of financial resources and powers in ethnic regions——takes Inner Mongolia for example. This chapter takes Inner Mongolia as an example, assume the internal powers and special powers of Inner Mongolia, and analyze real financial situation of Inner Mongolia.The fourth part analyzes the allocation of financial resources and powers in ethnic regions——takes Inner Mongolia for example. This chapter takes Inner Mongolia as an example, assume the internal powers and special powers of Inner Mongolia, and analyze real financial situation of Inner Mongolia.The fifth part is the empirical study on fiscal transfers in national regions—takes Inner Mongolia for example. About the central transfer to pay the national areas, the author analyze in two ways. On the one hand, analyze from the overall situation of transfer payments in ethnic regions; on the other hand, from the structure situation of transfer payments in ethnic regions.The sixth part proposes the policy recommendations that can improve the fiscal management system of financial resources and powers to match in ethnic regions. In accordance with the development strategy of the main functional areas, the government should adjust the financial management system in ethnic region, and define the powers of national area by the main functional area planning oriented. According to the reality of minority regions, the author raises proposals, such as allocating government finance reasonably.The seventh part points the policy recommendation to improve the national financial transfer payment. It mainly described from the basic situation of the financial transfer payment in ethnic area, the reasons for financial difficulties, increasing transfer payments to minority areas, strengthening ecological compensation mechanism of energy strategy in national areas and so on.