China’s Local Government Public Finance System Exploration And Research

As China’s economic and social sustainable development, people’s material and spiritualaspects of the increasing demand, which requires our government departments should take theinitiative to change their management style, for the public to provide more public services.Therefore, to achieve the equalization of basic public services to alleviate social contradictionsand solve the livelihood problems of practical needs, build a socialist harmonious society, anecessary requirement, it is a market economy under the conditions of public service-orientedgovernment’s primary responsibility. However, due to the existence of various levels ofgovernment is still a serious imbalance between the financial issues, together with the divisionof powers is not clear, resulting in the whole society the degree of equalization of basic publicservices is not high. Problems in the financial system has become the focus of social barriersand deepen social reform, deepen financial reform should become in the future to promoteadministrative reform steps forward, deepen financial reform is to improve China’s currentlevel of equalization of basic public services in an important way world. Some of the currentsocial contradictions concentrated in the financial system, especially the irrational structure offiscal expenditure, operational opaque, rigid lack of legal constraints, powers and financialauthority does not match the transfer payments are not standard. Financial system has animpact on the government’s credibility and affect social harmony and justice, livelihoodhappiness index, the impact of social reform to deepen the important factors will become asocial focus. Therefore, in order to achieve this objective requires us to equalization of basicpublic services as the goal, strengthening the government’s public service functions, topromote public finance system, to continue to reform and improve the public finance system,speed up the construction of the government by the economic model to a service type. This paper reviews the equalization of public services and of local government publicfinance reform related research, from the fiscal expenditure structure, division of powers andfinancial authority intergovernmental fiscal transfer payment system and other aspects of localgovernment public finance system problems and analysis of the reasons for the proposedreform of local government public finance should adhere to both fairness and efficiency,harmonization of policies, hierarchical management, financial authority and powers accordingto the principles of symmetry, to further clarify the central and local powers, a sound financialand fiscal powers to match system, increase transfer payments, promote inter-regionalequalization of basic public services, restructure financial expenditure, putting more financialresources to invest in public services, a reasonable adjustment and improvement system belowthe provincial level, effectively alleviate the financial difficulties of counties and townships,and improve our transfer payments oversight mechanisms, and constantly promote the furtherdevelopment of public finance reform. The article tries to analyze these problems and causes,identify improvement from the path of the public finance system, to achieve the equalizationof basic public services.