Analysis On The Problems And Solutions Of Changsha’s Public Financial Function

This article aims to analysis from the perspective of current domestic and foreignpublic finance theory, based on China’s national conditions, especially ten years’practice in Bureau of finance of Changsha, using theoretical arguments andempirical analysis to explore problems existing in public financial function of thelocal government, especially on Changsha, and make it work to guide the actualmunicipal financial work at the present stage.Based on foreign public finance theory and Changsha’s developing conditions,the author summarizes the functions of public finance of Changsha as follows: Firstly,Resource Allocation. The municipal government allocates resources to the field whichthe market cannot or not willing to take care, such as infrastructure construction,social security, compulsory education, judicial system, health care, etc. Secondly,Economic Regulation. At the present stage, the most important work of municipalfinance is to change the way of funding，and make the efficiency of financial fundsbeing fully used. Municipal finance should also focus on enhancing the capability ofinnovation, upgrading of the industrial structure and promoting the coordinateddevelopment of economy, nature and the environment. Thirdly, Financial Supervision.It can be described as two aspects, one aspect is supervision of public sector and themarket department, on the other hand is to accept the supervision of NPC, Bureau ofAudit and the social.Compared with the functions of public finance of Changsha, the author sorts outthe main problems existing in the present situation of Changsha. The function ofresource allocation has not been fully used.“Offside” and “vacancy” are both existingin the function of economic regulation.Financial supervision needs to be strengthened.Then, the author finds the reasons. The transformation of government functions needsto be accelerated. The governments’ major responsibilities don’t match their majorexpenditures. The results of the assessment of financial funds are wasted. At last, theauthor proposes to strengthen the function of public finance of Changsha. Firstly,strengthen the function of resource allocation by accelerating the transformationof government functions and optimization of budget management system.Secondly, upgrades the function of economic regulation by changing the way of funding and straightening out resource distribution among governments to bettermatch their major responsibilities to major expenditures. Thirdly, promotes thefunction of financial supervision by deepening financial supervision and performanceappraisal.