Basic Theory Of Chinese And Western Financial System Is A Comparative Study

The passing reform in the economical realm of our country is to negate the planned economical system and set up the market economical system. Accordingly, the public financial reform in our country is to negate the planed traditional public financial system and set up the market public financial system. Marketing and going public compose the basic clue of the whole process of the public financial reform and theory in our country. Therefore, the western public finance erected on the base of market economy becomes the referenced object for the public financial reform in our country consciously or unconsciously. Chinese and western public finance are both on the base of market economy, which determines Chinese public finance in future certainly research from the market failure and choose the theory of public goods as its core. This is the same tendency between Chinese and western public finance. However, because of the different economical system, political system and social culture, the basic theory and system of Chinese and western public finance are remarkably different, too. The difference mainly exists in two aspects. The first aspect is the basic theory of public finance, which includes the essence, the existent reason, the function and the decisions of public finance. The second aspect is public financial system, which includes the mode of organizing public financial revenue, the range and structure of public financial expenditure, the principle and system of public financial budget and the basic theory and particular system of public financial management system.The substance of analyzing the difference between Chinese and western public finance is to search the theoretic and practical enlighten significance for the public finance in our country. Public finance is a system which involves extensive ranges. It is not only an economical and political system, but also a system in social culture, which determines the reform is related to interests of many sides and difficult to make any advance. Especially, our country is a socialistic country which has a great population, extensive territory, poor productivity and unbalanced development. Erecting perfect public financial system needs to use the reasonable contents of western public financial theory and practice for reference from the basic situation of our country. We can't simply imitate and copy the western public finance.