Changchun City Financial Condition Operating Countermeasures

Reform of the tax system has been in place for many years, it has provided a financial guarantee for the development of local economies, but at present, the financial relationship between municipal governments at all levels has not been straightened out, therefore, how to clearly define the powers of local governments, and based on this, clearly define the financial authority of municipal governments, this would enable the municipal government to fulfil socio-economic management functions. The establishment of a better financial and tax system becomes crucial. In this paper, there are theoretical as well as empirical in-depth analysis of the financial structure and tax system, further, recommendations are provided for the improvement of the local financial reforms.In the theoretical part of this paper, a few theories related to the reform of the tax system are re-visited, in essence, the contents are focused on the basis of China's tax system reform and the differences, further illustrated the characteristics of China's tax system reform. on the domestic and international financial theory of the separation of financial and political powers. In a nutshell, tax system reform has played a role in improving local economy, but in the transition phase, the central and local governmental fiscal imbalance must be handled with care.In the empirical analysis, the author describes Changchun City financial operation in recent years and further realizes, through detailed analysis, the reform of the fiscal system in Changchun City has achieved certain results in the city's socio-economic development, it has played a tremendous role, primarily reflected in: increase the local governments'incentives to generating incomes, strengthened the government's sense of balance and self-development to promote stability of the local financial revenue growth, fiscal spending has increased annually; uphold the tax system on the local level, initially established basic framework of local tax system; promulgated by the central authorities under the transitional transfer payment regulations, the preliminary establishment of a regional financial balance mechanism to strengthen the financial status of an independent government and to promote Governments to achieve a balanced budget and financial management as well as an effective local budget.However, as one of the conditions under marketing economy, the financial relationship between the reform of the tax system is far from complete, still shown characteristics in transition, in particular, the reform of the system is based in the original responsibility form, which reflects heavily on short term interests. It has obvious disadvantages, primarily embodied in: power demarcation between governments is not clear defined; financial powers and political powers are not unified; the right of central and local income tax, in particular, are unscientific and not standardized; inadequate capacity to transfer payments and weaker regulate function; In addition, Financial management system has yet to be fully implemented, the management of departmental budgets and expenditure management are lack of financial supervision. The management is not yet standardized and resulting in lower capital efficiency, it is difficult to play the role as a financial department.At present, China's various systems are integrated into the international community, further the marketing economy is maturing, the task of Financial is even more difficult. How to face the challenges of completion finance as a national mandate of important economic measures, to change the difficult situation of the local economy, fully embody the functions as a tool in public finance, local economy should accelerate the pace of development. In view of this, the author believes that improving the local financial system should focus on the following aspects to be taken into account: to target public finances, and improve the financial management system; optimize expenditure structure, increase expenditures efficiency; step up financial reform and speeding up the establishment of public finances; strengthening government debt management, and dissolve financial risks; promoting the guiding role in the adjustment of industrial structure; strive to support employment, reemployment and social security work to further solve the problems related to living condition.In short, We must pay extremely attention to the development of local financial system because it has a bearing on the success of public finances reform. In this paper, in light of reality, some of the local financial framework for the establishment of a public financial are brought up, hopefully provide some thoughts for schoolers and financial sector workers to explore and building of the local financial benefits.