Heilongjiang Province Financial Difficulties

Since reforming and opening up, the situation of Heilongjiang Finance has deteriorated day by day, proportion of finance income in GDP decreasing, functions of finance dismembered severely, finance administration confused, which has resulted in the declination of government macro-regulating ability. The government failed to finish those it is responsible for. The finance has basically turned into finance for expenditure of governmental organizations. The pretty pass of Heilongjiang finance restricts the process of further reforming and development of economy of the whole province. Reasons regarding difficult conditions of Heilongjiang finance lie in factors in many aspects, factors in system and non-system, factors in economic development of the province and finance itself, subjective and objective. Therefore, right-about must be enhanced to relieve hard conditions of finance. make full use of effective allocation of resource and adjustment of income assignment by finance, and promote stability and development of Heilongjiang economy, by starting reforming of Heilongjiang economic system while strengthening administration of finance, expanding tax resources to increase revenue and reduce expenditure. We should hold such attitudes as describing the past objectively, handling the reality calmly and predict the future scientifically. making full use of present advantages to foster and expand resources of finance to enhance healthy, harmony and orderly development of economy. Thus difficulties of Heilongjiang finance will be relieved effectively. I Analysis of conditions and degree of Heilongjiang finance Since reforming and opening up, the finance operation of Heilongjiang macro- economy operation gives prominence to following features: the proportion of finance income in GDP is declining, finance expenditure grows too fast with irrational structure, gaps of income and expenses are enlarging, and functions of finance is weakening. 1.1 Analysis from the aspect of finance income From 1979 to 1993, from the view of total amount, the income doubled, but the GDP made low contribution proportion, which has been descending, to the finance. This does not comply with its development rule. 1.2 Analysis from the aspect of finance expenditure From 1979 to 1995, total amount of finance expenditure multiplied as 6.2 times. which is much higher than income of finance. The stiff expenditure increased fast. Gaps of finance expenditure were enlarged. 1 .3 Structural analysis 1 .4 Expenditure of administration increases too fast while expenditure for construction slows its growth and descends year by year. and expenditure for education, culture, sanitary and science fails to meet the requirement. 1 .5 Analysis of finance function irrational phenomena of fields of finance function comprehensively exist. Functions of finance shrinks, detracted, and can hardly realize overall and standardized administration to financial strength. 2 Analysis of reasons of Heilongjiang finance hard conditions 2. 1 Analysis of factor of system In 1994, reformation in terms of separate taxes binding up Heilongjiang finance. Values and prices of resources go against with each other, resulting in the out- flowing of double values. The government did not take effective measures to adjust the changes of assignment structure of GDP. 2.2 Ana]ysis of relations between finance and economic growth (1) Although economy grows at a high speed, the interests of economy are low. The finance suffered double l...