A Study On The Legal Problems Of Financial Management Rights Of Local Governments In China

With the advance of China’s finance, financial industry has put forward new requirements for environment. Financial development needs not only more relaxed policy, but also new concepts of financial management, including philosophy, main body and methods.China’s economy is in the period of fast development, and will demand more for finance. In fact, the disadvantages of China’s finance sill exist, such as extensive form, poor quality, shallow degree. At the same time, there are a lot of risks in financial management, such as repeated supervision and regulatory vacuum. The central holds the right of supervision but ignoring the local government’s management requirements. Informal finance in China is active but lack of effective guidance. Disconnection is existing between financial industry and real economy. Risk prevention mechanism in financial industry is also absent. With the advance of China’s economy, the local economy and financial industry will rise sharply. In the new situation, local government’s ruling ability in financial management will be put forward higher requirements.Based on the local government’s financial management, the paper talks about right decentralization of financial management in local government by analyzing the right decentralization between legislation and finance. It’s necessary and reasonable to set the right decentralization of financial management. The right of China’s local governments’financial management is good for making up the blank of financial regulatory and mobilizing enthusiasm. By this way, the local government will make progress in financial management. The paper analyses the current condition of financial management in Shanghai, Wenzhou city and Anhui province, and sums up its characteristics and insufficiency. The right of China’s local governments’financial management lacks legal confirmation. Boundary of financial management is unknown between the local government and the central. The system of China’s local governments’ financial management is not perfect. There may be a conflict of financial management between the local government and the central. These problems should be given high attention.Japan and America has developed maturely in financial industry. They have plenty of experience and innovation in local governments’ financial management. There are local financing platforms and municipal bonds in Japan. America has deposit insurance system and the system of upgrading licensees. Although there is no legal confirmation of local governments’ financial management, the local government in reality has already involved in. It is important to draw lessons from foreign experience and practice, and take the reality of our country into account. The paper gives some advices about setting the right of local governments’ financial management from aspects of goal, system, law and method.