The Probable Approach To Construct The County-level Public Financial System

The financial system of the county-level government is evolved from the traditional planned economy in China, which has the feature of the State Distribution.In the financial expenditure aspect, offside and absenteeism coexists, which can't be met the demands of the market economic system. In order to realize the function transformation,. the county-level government must convert the financial system firstly, and construct actively the public financial system on the conditions of the market economic system. This paper takes the county of Tiantai in Zhejiang province as an example. On the basis of demonstrating the essentiality and the necessity of the public financial system construction, this paper probes into the object and the basic principle of the public financial system in the county government, and provides the possible approach to construct the public financial system.The market-oriented reform changes the basic conditions of the county-level government's direct economic management. The relationships between government, enterprise and society are reconstructed. The government doesn't manage the enterprises directly, doesn't undertake the whole social affairs. The government administration functions are transformed. These changes provide the foundations and the operational spaces for the public financial system construction. With the development of the industrialization and the urbanization, a series of social conflicts are inspired, which request the county-level government to increase and improve the supply and the service of the public goods. Meanwhile, the inherent financial problems provide the internal demands of implementing the public financial system. With the development of the social democracy and the lawful construction, they also provide the important conditions for the public financial system construction. All of these make it an inevitable choice: to construct the county-level government's public financial system.The county governmental public financial system should be aimed for service, legal, beneficial and balanced finance. During the establishment process, the accommodation between the transformation of the financial function and that of the governmental function should be assured, in order to eliminate offside, to complement absenteeism and to provide public goods and services strivingly. During the concrete operation, it should be distinguished between the functions of government and that of finance at different levels, the financial function should be also transformed along with the different development phases, its extent should be partitioned and embodied, and the governmental major supply approach to the public goods should be altered from the direct production to the indirect adjustment.Nowadays, based on the fact of economical and social development in the districts, county governments should explore probable approaches to local financial function transformation. Focusing on enhancing the financial functions of the collection, management...