Research On The Financial System Amid The Reform Of "Power Expanded Counties"in Sichuan Province

The reform of tax distribution system in1994has complied with the requirements of market economy and established a comparatively formal framework of intergovernmental fiscal relations. Therefore, it has achieved significant results since the past10-plus years. However, there still exist acute conflicts between the financial authority and expenditure responsibilities at local governments below the provincial level, and big deviation between the appropriate financial authority and the expenditure responsibility assumed, which lead to difficulties in the financial operation and dampen the initiative for development at the grassroots level.Promote the efficiency of government administration to solve the financial difficulties at the grassroots level, expand county economies, and realize the balanced urban and rural development, the Sichuan Province has gradually carried out reform on financial system in "power expanded counties", in a bid to explore new ways for the county economic development. Since the implementation of pilot projects, the financial system has gone well which has further advanced the economic and social development in these pilot counties. However, a series of difficulties and problems do exist.The present paper aims, in an attempt to achieve the ultimate goal of administrative "direct provincial supervision of county" through deepening and complete reform of the financial system in "power expanded counties"."Direct provincial supervision of county finance" to replace the present "municipal supervision of county finance". Based on theoretical analysis, this paper takes the "power expanded counties", the financial system of "direct provincial supervision of county finance" in detail, and then objectively evaluated the positive effects of this financial system reform in improving the transfer payment system below the provincial level, optimizing the local fiscal expenditure structure,and promoting the local economic development,. At the same time, the present paper made rational analysis on the new problems and difficulties in the present financial system of "direct provincial supervision of county finance", and their reasons. In the final analysis, this paper proposes the objectives of financial system reform of "power expanded counties" in Sichuan Province, coordination of relationship between relevant stakeholders, standardization of financial transfer payment system, and promotion of administrative "direct provincial supervision of county" by financial "direct provincial supervision of county"...