The Effect And Influencing Factors Of Fiscal System Reform Of "Province Managing County"

With the county’s economic strength and national policy from the "value city more than the rural area" to "urban-rural integration" change, development and growth of the county economy has become an important guide for the new era of public policy. The provinces have started working through the "institutional breakthrough" to promote county development, and Fiscal System Reform of "Province Managing County", which is considered as an important breakthrough to alleviate the county financial difficulties, promote the country’s economic development and improve people’s livelihood construction. The reform practice in Zhejiang Province also proved the Fiscal System Reform of "Province Managing County" can achieve the effect.However, the fact that only the "Province Managing County" fiscal approach is not able to ensure the improvement of the county financial plight and the development of county economy and society. Over the past decade, the provinces which implement" Province Managing County" reform cannot all succeed copy the Zhejiang experience, a lot of central and western provinces are facing embarrassment that the reform failed to achieve the expected results. Shaanxi Province has managed to implement reforms on29counties county so far, the policy intent,"alleviate the county financial difficulties, promote the country’s economic development and improve people’s livelihood construction", has not changed, but economic growth and livelihood issues are not improved as expected. The county financial difficulties are still exist, and the effects of policies are not stable.Based on the comparison of policy intentions, implementation methods and policy effects between the Zhejiang and Shaanxi Province, we found that local financial resources, the policy process, the administrative decentralization, the reform of aging and other factors affect the reform effects. Firstly, the local financial resource is the endogenous variable, the financial resources decide the governmentability to promote the county’s economic development and balance the urban-rural gap in co-ordination; Secondly, the policy process is the key factor, the full pro-research, the scientific rationality of policy and the feedback and summary after implementation are essential; Thirdly, the administrative decentralization is an important factor of the county economy development. Only through the cooperation of the financial system and the administrative system, the county’s economic development activity can obtain a fundamental activity, the financial situation and the livelihood building can possess the basic security; Of course, fiscal reform is not only a change in management, it is the adjustment of interests. The cost of policy change is large and cannot be effective immediately. Therefore, only through the administrative decentralization to develop the county economy; scattering the wealth in county to strength the local financial resources and the effective policy process, the advantage of "Province Managing County" Fiscal System can work to solve the problem of the county financial difficulties, strength the county government ability in co-ordination within the jurisdiction and responding effectively to the needs of people, thus contributing to the county’s economic development and people’s livelihood construction.