The Research On The Problems And Reasons Of County Governments' Capacity Building In China

Since reform and opening, our country socioeconomic development is rapid andpeople's material and cultural level is increased day by day, which calls higher requeston the financial capacity construction. Since the practice of the system of taxallocation, with the deepening of the financial capacity construction from the centralto local, county financial capacity construction will become the priority of therevolution of financial management system and the problems existing in our country'scurrent county financial capacity construction are will also be revealed.Through the deep research of the problems and reasons of both the central andlocal, province and county financial capacity construction, especially through theanalysis of relevant financial data of Shanxi province, this paper demonstrates themain problems existing in current county financial capacity construction.The system of financial revenues and expenditures is not complete. The currentfinancial system continues1994's system of tax allocation. Although partiallyadjusted, many factors in the whole system which don't fit the economy developmenthave been uncovered, such as asymmetric fiscal power of the central and local,province and county, the various financial operation organizations and the transfer ofpayment system to the richer regions.The financial level setting is huge. The five-level government, five-level financeand four-level principal agent have caused bloated settings of financial organizationand inefficiency. County finance, as the basic finance, which communicates andreports directly with its higher level, obviously reflects the financial inefficiency.The legal supervision system is not perfected. On the first hand, our country'slegal supervision system falls behind socioeconomic development, the propagandaand education of financial legalization don't work well and the financial operationalsystem lacks legal supervision and control; on the other hand, because of theimperfection of legislation system, most of the current financial law, administrativelaws and regulations were established before2000. So the financial legislation construction is seriously delayed.In the case of our current problems of county financial capacity construction, thefinal part of the paper further put forward the resolutions of completing financialsystem; coordinating the finance and management power between the central and thelocal; reforming the organizations of revenue and expenditure and extending its scale;simplifying the government levels; solidifying the financial foundation and improvingits capacity and perfecting its legal and supervision construction.