A Study On The Mechanism Of Financial Revenue Sharing In Cities And Counties

The nati onal financia l sys tem is closel y relat ed with i ts budget managem ent sys tem, admini strati ve sys tem and taxati on syst em. The financial sys tem need to focus on the core problem of splitting the revenue and expenditure responsibilit y bet ween government aut horities at different level s. The administrative rights and expenditure responsibi lity between authori ties at different levels are not clear. The financial revenue of municipal and county government can not support the rapi d development of local econom y due to the effects of bad economy i n the second half of 2013, macro control and struct ural tax reduction. The municipal control ability on count y is weak, and the devel opment of counti es is signifi cantly different. To solve the above problems, t he financial sys tem hist ory of Yunnan province and L city is briefly presented. In thi s paper, the probl ems of sharing financia l revenue s for ci ty and counti es are pointed out based on analyzing L city’s control capa bilit y, financi al revenue structure, transfer paym ent and etc. by literature analysi s methods,com parati ve analysi s methods and statist ical analysi s method. The problems and mechanism for the city and counties to share financia l revenue under new s ituation is probed wit h refe rence to dom estic and forei gn experience s, and the propos als are presented as follows:Firstly, the financial right, admi nistrat ion right and revenue right are combed and a sys tem that the revenue and administration right match with each other is established. The local t axation sys tem is est abli shed on occasion of replaci ng business tax with VAT. The channe l of provincial authorit y direct to county authorit y is built based on the channel of county to village. The transfer paym ent adm inistration measures are coll aborated, which is pres ente d in the paper in four aspect s.Secondly, the optimization way of local financial revenue st ructure is presente d to enhance s tabl e growth of local fi nancial revenue, expedite the progres s of budget reform ing, strength financial reve nue managem ent, increase the sharing perc entage of local financia l revenue and improve t he usage efficiency of financia l capital.Thirdl y, the shari ng sys tem betwee n the city and counties is est abli shed, and benefi ts sharing system bet ween city and counties is adjusted. Based on properl y splitting financial revenue and expendit ure of the citi es and counties, and wit h com prehensive cons idera tion int o their financia l revenues, the counties, cities anddistricts are sorted as per thei r average GDP growth percentage, average personal available revenue, local financia l revenue, local financial expendi ture and total population. The taxes to be shared by cit ies and non tax ca tegor y are cle arl y defined,and the critical taxation sources and sharing ratio to be shared by the city are defined.