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The Study Of Local Finance System Reform From The Perspective Of Province Administrating County

Posted on:2012-01-27Degree:MasterType:Thesis
Country:ChinaCandidate:L FanFull Text:PDF
GTID:2216330338956305Subject:Administrative Management
Abstract/Summary:PDF Full Text Request
At present, China carries out five-tier administration system:the central government, province, city, county and rural town. Correspondingly, the finance system is arranged in five-tier. During the Tax-Separating System Reform in 1994, it is possible to distribute authorities and the relevant expenditure responsibilities. It is able to regulate the finance relationship between the central government and local governments to some extent, but it lacks strict system to regulate the finance relationship of sub-provincial governments. In the recent 30 years after Reform and Openness, local financial revenue increased greatly; however, primary-level financial difficulties became more and more seriously, as well financial capacities of different places were varying. It is argued financial difficulty of province administrating county lies in the obstructed economic development by the redundant arrangement of sub-province local governments and the decreased enthusiasm of county financial organization by the financial system of city administrating county. In that case, some provinces conducted financial system reform in province administrating counties and achieved positive effects, which gained recognition of central governments. The reform, confirmed in terms of policy, will be conducted nationwide according to the given timetable.In the beginning, the present thesis introduces the history of financial relationship change of governments at all levels from Reform and Openness until now. On the basis of Financial Decentralization Theory, Government Hierarchy Theory and others, it analyzes financial relationships between governments and the local financial system in China to discover the contradiction between the granted and the existed. Then, the author discusses the shortcomings of financial system in city administrating county aiming to discover the drive to reform financial system in province administrating county. Then, the author introduces the realities and effects, as well analyzes the problems of financial system reform in province administrating county. The relevance of rural town financial difficulty and city administrating financial system, as well the relevance of province administrating county financial system reform and the resolution of financial difficulties in county and rural town illustrate that "city administrating county" is not the immediate cause of financial difficulties, and "province administrating county" is not a cure-all medicine of financial difficulties. Instead, governments of higher levels conduct the Financial Opportunism to push authority but draw property ownership, which is the immediate cause of financial difficulties in county and rural town. Additional, the imperfect incentive and restraint mechanism worsens the existed difficulties. The financial system reform in province administrating county, which is not a direct resolution of the problem, provides a reasonable system and framework for the reform through decreasing levels of local governments, regulating their financial relationship, dividing their authorities and expenditure responsibility, and improving financial capacity arrangement. Based on the above analysis, the author proposes the aim, principles and suggestions of financial system reform in province administrating county.
Keywords/Search Tags:province administrating county, financial system, financial hierarchy, finance of county and rural town, reform
PDF Full Text Request
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