On The Reform In Shaoxing's Local Public Financial Expenditure

Since the reform and opening in 1980's, our national finance and taxation reform has been mainly focusing on restructuring the income system. The structure of the finance expenditure and the system of distribution are inherited from the planned economy without any great changes. Apparently, this kind of finance expenditure and distribution can neither adapt to the development of socialist marker economy, nor meet the requirement which the social public called for under the condition of socialist market economy. Hence, reforming current expenditure management system and establishment, the new system of public finance expenditure and distribution which suits the socialist market economy obviously become the focus of finance management reform as well as the only way to improve the ability of governing and financing. The Fourth Plenary Session of the 16th Central Committee proposed to establish a harmonious socialist society based on people oriented. It as well required to accelerate the establishment of the public finance system, improve expenditure structure, the government's efficiency of expenditure and the ability of using funds. Therefore, further promoting the reform of the public finance system , accelerating establishment the public finance system are of great importance for regulating the government's action and increasing the efficiency of the finance funds. As a result, it can not only eliminate the disequilibrium among the distribution of the finance funds, but also keep the economy developing consistently, healthily and steadily. The local finance expenditure is the main body of our nation's public finance. The key point and breakthrough of establishing the frame of public finance is to promote the reform of local public expenditure. The function of government's transparency determines the tropism of finance under the condition of market economy. In order to deepen the form of local expenditure and establish the frame of public finance, we must carry out a comprehensive reform of economic structure and political structure which aims at establishing the foundation of financial publication system, not merely rationally define the limits of expenditure, adjust the structure of expenditure, improve the public transparency, fulfill the financial responsibility or upgrade the ruling circles capability of finance management.In this paper, the author employs the theory of socialism, market economy, the basic theory of finance, as well as the principle of the public finance to analyze the local public expenditure systematically. According to the implementing of the local expenditure reform in Shaoxing, the author also expands the local expenditure reform, analyzes the inner question about it, even proposes the idea of such reform. Through all those efforts, we expect to be able to quicken our steps of expenditure reforming in Shaoxing city and to provide some quotable ideas of the reform to other cities.