The Research On Local Financial System Reform Of Henan

In China, the tax-sharing system has been running for nearly two decades. It successfully rationalizes the central and provincial fiscal relations between the governments. It also has shown great strength in enhancing the financial strength of the central government and improving the capacity of the central macro-control. However, the division of powers between the property right and financial right in local governments below the provincial has been vague; the tax-sharing system in local place has not really set up. In reality, the higher instituting policy, the lower paying capital is a very serious problem. It is a direct result of the difficulties in operation of county and township, and other basic financial status. Over the years, these issues not only have not been effectively addressed, but have been more serious.In recent years, to alleviate the financial difficulties of counties and townships, and enhance ability to basic public services, experts in academia and the Government departments are casting their eyes up the local financial system reform; hope that they could straighten out local governments'fiscal relations, a fundamental solution to county financial difficulties. Many provinces are carrying out policies to weaken municipal finance for the purpose of "direct control of the county" financial system reform, and the "county management of Township" financial system reform. Since 2004, Henan province implemented the "direct control of the county" financial system reform. In 2009, based on lessons learned, Henan province expands the scope of the experiment. There are more than twenty counties currently implement the financial "direct control of the county" reform. China's financial system below the provincial is the place to deepen tax sharing system, and it also is the reality of the current needs of our economy and society. Its essence is a financial system on local issues of centralization and decentralization, and it involves the problem of organizational structure of government. Henan Province has special aspects for the actual situation in promoting the Fiscal Reform. This paper is based on such a large background.This paper is based on the theory and practice of political relations between domestic and foreign local government and the choice of Henan Province in Fiscal Reform as the object of study. By collecting large amounts of data, cases and pictures, a combination of finance, economy science, management and other administrative subjects, this paper tries to give valuable suggestions to Henan Province in Fiscal Reform.The following article began with the issue of financial reform of the existing financial system and the need for reform of the current fiscal situation. It mainly analyzes the meaning of our current tax-sharing system and the significance to promote the province with the following financial reform. Then it analyzes the domestic and local financial system on the exploration and practice. Then it continues to point out the difficulties and challenges that the following financial reform in the province of Henan Province will face. Finally, this article points out the guiding ideology and basic principles that Henan Province should obey in improving the financial system and then puts some forward corresponding countermeasures.