Research On The Province-county Directly-relating District Financial Management System In China

The taxation reform that took place in 1994defined the boundary of the financial relationship between the national government and local governments,but the financial relationship between each level of the local government has not compartmentalized definitely. The local financial system's confusion has led the basic government to suffer financially, the county and the city government can not develop harmoniously. In the last few years, local governments suffer financial reverses, which is one of the forms of that incompatibility. But in Zhejiang Province where the county's finance is directly related to the province has escaped from these problems,and further more,the county economy in the province is on the top position of the nation. It is now a trend to put this financial system into practice nationally.The reform, in same way, has theory feasibility, but which also will be facing so many difficulties. While the reform goes decently, the problems will appear. How to deal with kinds of problems is worthy us to thinking about. Nobody knows whether the reform can be succeeded. This article will give comprehensive analysis on this financial system,to explore the mechanism of its function,to inspect its economic advantage over the four一level district financial system,and give out Policy suggestions on it's practice.