Provincial County Financial Reform Study

Reform of the tax system in 1994 complied with the market economy the request, has established the relative standard intergovernmental fiscal relations frame, and made the remarkable progress in the past more than ten years. However, the local governments below provincial between the financial authority and the disbursement responsibility's contradiction is very prominent, the corresponding financial authority with the disbursement responsibility which undertakes have the big deviation, has not only caused the local finance difficulty, but also dampened the enthusiasm of the grass-roots development. A long time, these questions have not been able to obtain solve effectively. In recent years, the academic circle, the government policy-makers went to the vision the local finance organizational reform, hopes through the province below the reform of the financial system, straightens out the place intergovernmental fiscal relations, achieves the financial authority and the governance echoes or matches, and fundamentally solves these problems. Everybody's focus is the reform of County Administrated by Province. At present, the nation had Zhejiang, Anhui, Hubei, Hebei, Shaanxi and so on more than 20 provincial capital areas to carry on the reform of County Administrated by Province. Reforms for several years, is straightening out the Local authority fiscal relations, raises the transfer payment fund benefit, promotes aspects and so on county territory economic development to gain many valuable experience.This article selected topic is precisely based on this kind of background. Along the road of the Chinese Fiscal Decentralization, reform of County Administrated by Province as a research subject of the paper, from angle analyses and so on financial decentralization, multistage government theories and economic, found the reform basis. The reform of the financial system improves and Pareto improvement, financial reform of the flat, to explain "The North paradox" to take a reform the fundamental research frame, the analysis carries out a reform the agent. Through to province reform situations and so on Zhejiang, Shanxi empirical studies, found the reform of County Administrated by Province the practice basis. Finally, proposed that consummates the reform the measure.Involves the province, the city, between the county third-level government the responsibility jurisdiction division reform, how to let the Local authority which the status appeared by "the economic man" find gambling the balance point, was the question which was worth studying.