Direct Control Of The County Financial System Reform

The reform of Province-Governing-County Fiscal System is one of the most important fields of the current fiscal system. In 1994, the fiscal and tax reform established the relationship between the central government and the province government, but under-province fiscal system were not clear. Different province has different fiscal power and administration affairs. There are four levels fiscal system—provinces, autonomous regions and municipalities directly under the Central Government----cities with districts and autonomous prefectures---counties, autonomous counties and cities---townships, ethnic townships and towns. With the development of the economy and society, City-Governing-County fiscal system is not fit to our country. Country government not only has little financial resource, but also affords excess affairs. And the supply of the public service lags the demand.Firstly, the paper discusses the theory basis of the supply of local government public service, and describes the fiscal decentralization, the existence of the local government, and the supply of the public service. Secondly, it shows the current fiscal system under province, and examines the problems of the system, and analyses the necessity of the reform. Thirdly, the paper introduces United States, German, France and India, and focus on the fiscal system of the four countries. It shows that the divisions of the fiscal power and administration affairs, receipts and the transfer system are very important for the province. Fourthly, the paper chose the Zhejiang province as the paper'model. Province-Governing-County Fiscal System of Zhejiang province is analyzed.At last, the paper advances some points on the reform of Province-Governing-County Fiscal System, such as administration affairs, the role of the government, transfer system and the complement measures. Also, the paper shows some shortcomings and further research.