On The Reform And Improvement Of Budget Management System Below The Provincial Level

Since January1,1994, General Office of the State Council decided to implement thetax-separating system reform across the country. Over the past20years, the tax systemreform has made remarkable achievements. But there are also outstanding problems, forexample, fiscal revenue and expenditure responsibilities among governments are not clear,the transfer payment system still needs improving and budget management system reformbelow the provincial level has not yet fully in place. Especially budget management systembelow the provincial urgently need solving by deepening reform.This paper first studies the theory basis for the tax-separating system reform in ourcountry, analyzes the present situation and the existing problems of tax-separating systemreform. Through learning from successful experiences and lessons from foreign typicalcountries such as America, Germany, thus it puts forward further ideas of perfecting budgetmanagement system reform below the provincial level.This paper is divided into five chapters. Chapter1is the introduction, the rest of thefour chapters are the body parts. The first chapter introduces topic basis, theoretic andpractical significance; summarizes overseas and domestic research status abouttax-separating system reform; puts forward the research ideas, methods, contents and theinnovation points in this paper. Chapter2: theoretical basis for tax-separating systemreform. By introducing the theory of fiscal federalism, first generation fiscal federalism--TOM model, the criticism and development of first generation fiscal federalism fromBrennan and Buchanan, the paper builds a complete theoretical framework for budgetmanagement system reform research below the provincial level. The third chapter analyzesthe current situation and existing problems of budget management system reform belowthe provincial level in our country. First it analyzes the present situation of budgetmanagement system below the provincial level in China, secondly it points out the mainproblems by analyzing a large amount of data. The fourth chapter is about internationalborrowing and enlightenment of tax-separating system. The last chapter of this paperputs forward ideas and suggestions of improving further, according to the present problemsof budget management system reform below the provincial level in our country.