Study On "Provincially Direct Supervision Of Country Finance" Reform Of Public Finance System In Shandong Province

With the development of market economy and the progress of the society in our country, the traditional financial system has no longer adapted to the new situation. In recent years, Chinese scholars have further studied the local fiscal system reform, trying to seek a better way. Some provinces carried out the pilot reform which puts county finances directly under the management of provincial governments. The reform obtained good results in practice. Shandong province began to implement the pilot reform in2009. So far it has been nearly five years, and it is time to inspect the effect. We should maintain and develop the achievements and successful experiences in the reform. For the existing problems and difficulties in the reform, we need to look for the reasons and solutions. By doing this, we can make the system better.This article takes the pilot reform as the research subject, and it has used western fiscal decentralization theory, institutional change theory and the equalization of public service theory as lessons. For the analysis method, this article has chose literature review methods, comparative analysis methods, and investigation methods. This article takes Juxian in Shandong province as an example to analysis the achievements and difficulties in the reform. On the basis of using the experience of other province and the actual situation of Shandong province, this article explore to find a better reform path and policy measures. In the next step of the reform, we need to handle the intergovernmental fiscal relation correctly, perfect the transfer payment system, and promote the coordinated reform of administrative system. Also we have to clear the functions of the government, improve administrative efficiency and establish scientific and reasonable place supervision and restriction mechanism to strengthen the comprehensive supervision of various finance operation.