The Study On The Reform Of Province-Governing-County Fiscal System

Allocation of financial power is the core of province governing county fiscal system reform. Its aim is to do the relationship well between governments and markets. At present, our country try to solve the dilemma of the lower-level government financial difficulties by the pilot scheme of province governing county mattered to the fiscal regime’s improving.Province governing county fiscal reform help for cutting financial hierarchy,enhancing administrative efficiency in our country. It also promotes overall allocation of the provincial government more effectively, then, government develops local economy by some systems such as transfer payment.Province governing county fiscal system reform is carried out under five administrative levels framework.So there are provincial tube city, county financial details on the transition is still the executive control of the county-level city generation Since reform involves redistribution of interests among all levels of government issues, virtually also exacerbated the administrative game behavior prefecture-level city and county governments. Therefore, with the development of direct control of the county financial management system, local governments will inevitably further hope in face of social and legal and institutional environment can have a stable order security, therefore, China should gradually transition from direct control of the county financial direct control of the county administrative reform, otherwise between the city and county governments will have contradictory administrative coordination more difficult.In further promote the direct control of the county financial reform process, we must as far as possible so that the division of powers in line with property rights, fiscal reform in order to play the maximum benefit. The administrative reform, in the future, also need to follow the footsteps of the financial system, followed by the implementation of the pilot, in order to defuse the direct control of the county financial reform process to expand their power by the executive management, management scope, unclear etc. factors, new contradictions and new problems arising. Further words, streamline functional areas among all levels of government to promote the provinces(regions) of public services and the construction of equalization, so that our country can continue the stable development of the economy, taking into account the social security and other public services in fiscal equalization development and fundamental administrative divisions for the breakthrough of regional economic development constraints.