Study On Finanical Power Allocation In The Financial System Reformation Named Country Managed By Province Directly

The reformation of the financial management system, named "Province government direct control of the county", is mainly to adjust relationships between the province government and governments below the provincial level.The substance of this reformation is to adjust the vertical power relationships between governments, and the optimization of the government financial power's configuration is important, as the power is the key in relationships between governments. The financial system that the county finance is directly managed by the provincial is based on current administration management system and distribution patterns of interest. This reformation is to solve dilemmas brought by Tax Distribution from 1994. From 1994, the primary local governments are responsible for supplying more and more basic public services while with less and less financial powers, which brings the county government more and more financial difficulties. This reformation may reduce the difficulties and make Tax Distribution more and more standardized and perfect. But because of the political and social environments in China and the inconsistent with the reformation of the administration management system, there are many difficulties in the allocation of the financial powers and rights between governments.After the analysis and study of the backgrounds and the significances about the reformation, this article defines the scope of the study on financial powers. Theory of fiscal decentralization, the regional of public goods and the theory of the location of the vertical power are the theoretical basis for this article. By studying the cases about Zhejiang Province and Shandong Province, we learn the difficulties in the reformation from respects of the system, the government and the social, which include the lack of legal protection, lags of financial system itself, inconsistent with the responsibilities and privileges, conflicts between fiscal decentralization and administrative centralization, not perfect system of power supervision, lack of public participation and media supervision and so on. In order to ensure the optimization of the financial power location and the healthy and benign operation of the financial power, according to the difficulties, the solutions include developments of a science and sound legal system, establish perfect accountability and control mechanism of power, full use of the supervision rights of the People's Congress and audit departments in government, reformations of tax structures and the transfer payment system, reformations of administration management system and so on. There must be scientific and perfect supporting measures and democratic and legalistic environment to ensure the optimal location and the benign operation of the financial power.