The Basic Theory And Legislation Route Compatible With The Government Power And Expenditure Responsibility

Fiscal administration system is responsible for dividing powers between financial rights and government power in states institution at all levels.The better exertion of government function relies on collaboration of all levels of governments.Therefore,it is needed to set up a fiscal administration system compatible with the fiscal power and government power at all levels of governments.In 1994,our central government began the tax-sharing reform combined with our nation conditions and learning from the successful experiences of marketing economy countries.It thus clarified the fiscal relation between the central government and local governments.Besides it not only enhanced the capability of macro-economic control of central government,but mobilized the enthusiasm of local government to organize the budgeted revenue and expenditure and develope local economy.All these will provide material support and fiscal guarantee for our Chinese dream,the great rejuvenation of our Chinese nation.While,as the economic environment are changing and many reforms have been launched,the tax-sharing reform meets some troubles in operational process,the mismatching of government power and expenditure responsibility between governments,normlessness of configuration patterns,imbalance of configuration states,risks of unable to summarize and unable to sorting out the fiscal relations.Therefore,our government continuously puts forward reforms of fiscal and taxation systems,which define the government power at all levels and adjust and specify the.expenditure-income relations between governments,thus to build an sound fiscal system that matches the government power.On June 30th 2014,the political bureau of the conference adopted the ’overall plan to deepen reform of fiscal system’,which states clearly that it is required to ’adjust the fiscal relation between central and local governments,to build a new system that matches the government power.’ From this plan,we get the idea that it is required to improve the fiscal administrative system;we should focus on defining the government power at all levels and build the legal guarantee that goes with the government power and expenditure responsibility.It is an systematical project to achieve the accommodation of government power and expenditure responsibility.Therefore,we must make the government power lists,promote the transformation of government functions and define the government power and the relation between government and market.Besides,we need to define clearly the expenditure responsibility between governments,enhance budget management and rationalize the fiscal relation.It is also needed to coordinate the financial ability and regulate the local debt,so as to enhance the administration capacity of our state.