Research On The Operating Mechanism Of Local Finance In The Reform Of Province Administrating County

With the reform of the tax system in 1994, the financial revenue is being increased quickly, The financial strength is being enhanced day by day and the financial condition is being improved. Because the reform of the tax system divides clearly the revenue attribution of governments at all levels, centrally controlled proportion of state revenue has been increased quickly. The centralization of property makes financial resource gather upwards. Correspondingly, it appears a contradiction between the revenue and the expenditure in the local finance under province; the duties and the financial authority do not match; the local finance especially county finance is difficult; and the debt of local governments is large. Those problems in local finance drain the enthusiasm of local governments to develop local economy. In recent years, in order to change the difficulties of local finance, both the theoretical workers and actual policy executives puts forwards the plan of reforming local financial mechanism by reforming local financial mechanism, rationalizing the financial distribution relationship of governments at all levels, matching the duties and the financial authority. Thus fundamentally solve local financial difficulties. Province administrating county system, which has been tried in the whole country for many years becomes the focus of reform and has an incomparable advantage.The thesis studies the operating mechanism of local finance, based on the reform of province administrating county. The study aims to find the objective basis of reforming local financial operating mechanism and carrying on the reform of province administrating county. Take Anhui province as an example, it analyzes the current situation and problems of local financial operating mechanism and the change of local finance status after the reform of province administrating county, presents the advantages and problems of province administrating county mechanism, and puts forward the measures of improving the reform of province administrating county.Chapter one introduces the purpose and significance of this study; chapter two states the change of financial operating mechanism in China since the founding of PRC. Chapter three analyzes the current situation and problems of local financial administrating county; chapter five puts forward the suggestions of improving the reform of province administrating county.