How The "Provincial Governing County" Effects

Since the mid-1990s, the regional development competition was becoming increasingly fierce. And what accompanied by against with the process of economic integration is such as local protectionism, administrative economy phenomenon and so on. Under this circumstance, the defects about the system "City governing County" and the possibility and necessity of the implementation of the system "Province governing County "start to draw the attention of many scholars in all these fields.In this paper, I choose to analysis this phenomenon from the aspect of financial reform in China. Back to the early1980s, the reform of "withdrawal to build the city" implemented the financial system of the "City governing County" nationwide. In the prevailing circumstances, the "City governing County" system has played a very important role to break the barriers between the various counties. From the international level, the nation who implemented of the tax-sharing financial system are always set up for three levels in its government structure, such as Britain, Japan, the United States. As a contract, our government is set up in five levels. How to solve the problem of deviations between financial authority and executive power of the grassroots? How to solve the financial difficulties of counties and townships? The fiscal reform may give its answer.As of2009, more than20provinces and autonomous regions such as:Zhejiang, Anhui, Hubei, Heilongjiang, Fujian, Hainan, Jilin, Guangxi has executed "Province governing County" financial system reform. According to the NO.1Document of the centre government in2009"steadily push forward the reform of "Province governing County" system in accordance with the law", however, the central government did not make a unified operational deployment. Meanwhile, throughout the reform process, new problems and new situations in constantly occur. There are still a lot of doubt and controversy for the reform of the provincial governing county. This article aims to the total county fiscal revenue and fiscal expenditure structure changes from the reform of the financial Province of Jiangsu Province county system which given the strong support to this reform.