Operation Effects Of The HuNan's Local Financial System

The current fiscal system of HuNan province is built referring to the revenue-sharing fiscal system carried out by the central and local goverment in 1994. 10 years, operating results of our province's local financial institutions in the end how, What place has played a positive role for our province's economic development, what are inadequate, how to reform and improve, This is a great practical significance issue. Financial institutions mainly include three aspects : government spending, government revenues, government financial resources between the vertical and horizontal balance. Therefore, this paper based on the province at all levels of socio-economic development and fiscal operations of the close relationship between, the past 10 years of our province's government and the distribution of financial resources for a specific statistical analysis, used to study the local effect of the operating system, According to statistical results of the financial structure of our province effects of the operation carried out a detailed analysis and assessment. Empirical studies find:Hunan's existing financial system achieves remarkable results in fiscal standardization and ensuring the government's macro-control capability; But financial expenditure balance effects are undesirable. The financial system has not reduced our province regional financial differences, but will further expand the difference; Generally speaking, the current financial system's financial ability to balance income effect is more obvious and achieved good results in balancing the municipal financial ability.Transfer payments has been made effective in promoting coordinated regional development. Overall, local financial institutions have a very clear incentive effect, but with the other provinces and municipalities throughout the country, there is still a certain gap. Based on the above understanding, Hunan province ought to innovative financial mechanism, and strive to promote the in-depth institutional reform issues, and promote " Province directly management County "" Township financial managemented by the county " system, and to Deep the management of non-tax reform, Raise revenue as a proportion of GDP, strengthen macro-control capacity of the provincial government to mobilize all levels of government fiscal enthusiasm, to eliminate the current system inadequate in the balance of payments division andthe financial capability equal respect ,to strengthen financial institutions's capacity suiting to the province's economic development.