Study Of The Local Financial System In China

After the intergovernment fiscal system reform in 1994, the intergovernmental fiscal management system frame that is adapted to the market economy development has been built up in our country. Local governments establish the finance management systems according to the native actual circumstances and in accordance with the system of the central government. But so far, the local finance system in our country is not perfect, which has effect on the function of existing system. On one hand, the existing intergovernmental fiscal system itself is not perfect. On the other hand, many local governments do not establish the finance management system in accordance with the central government. The form is diverse and the old systems can be find. The definite government duties and expenditure responsibilities have not been defined. Also, the incomes of some local governments and the transfers from superior governments have not been stable. This text aims at analyzing the existing systems, then finding the mistakes in order to put forward the policy suggestion after the internantional comparison. The research object includes intergovernment fiscal system at local levels. The main line of this text can be found from four aspects: the dividing of intergovernment duties and expenditure responsibilities, the defining of intergovernment incomes, the issue of intergovernmental transfers and the adjusting of finance layer class at local levels. This text trys to study local intergovernmental fiscal sysytem problems from these aspects.The full text is divided into totally four parts:The first part is introduction. Firstly, the introduction of the background, meaning, study frame of this text can be found. Secondly, the text studies the the basic theories of finance system in order to provide effective evidence to explain the necessity of sharing system. Thirdly, it introduces the development of intergovernment fiscal system from the highly centralized system period to the fiscal contracting system. The second part is based on ananlyzing the present condition of local fiscal system. Firstly, t researches the present condition of the system, including the present divides of intergovernment duties and expenditure responsibilities, the present definition of governmental incomes and the present conditions of intergovernmental transfers at local levels. Secondly, the problems of local finance system will be analyzed. Thirdly, the system reasons will also be found, including the contrary between the market economic system and the relatively centralized political system, the confusion of the relation between government and the market, the existing system vacuum district, the obstacle for maintaining existing interest and the lack of effective supervision inside and outside.The third part is about the internantional experiences and apocalypse of local intergovernmental fiscal system. Three different nations will be chosn in this part, namely the United States, Germany and Japan. The research and comparison of the fiscal system in these three countries will provide apocalypse so that we can find efective solutions to solve the probloms of our local fiscal system.The fourth part is about the solutions to solve the problems of our local fiscal system. This part is not only the core part of this text but also the end aim of the study. Firstly, it discusses the solution of reducing the government layer class, then, the efficiently dividing of the intergovernmental expenditures and incomes, the establishing of transfer system at local levels. At last, the text will put forward the suggestions of the kit facilities reform, matching with the whole adjustment of local governmental fiscal system reform system in China, which can make the suggetions more valid.