The Optimization Of Fiscal System Reform Of Shenzhen

The tax reform which has be fully implemented for more than 20 years preliminarily make clear the financial allocation relationship between local and central governments by way of economic decentralization.The discussion and analysis on the financial relations between local governments are inclined to focus on the financial system reform experiment under the “province governing country” situation and have achieved many results both in theory and practice,while the municipal financial system is rarely studied in the academic community.Concerning that the Third Plenary Session of the Eighth Central Committee positions the finance as "the footstone and pillar of national governance ",emphasizing that the provincial financial system should refer to the toplevel design that changes simultaneously within the central and local governments,and the true facts that more and more cities transform counties into districts,the study on the municipal financial system is becoming increasingly significant.The reform of the municipal financial system evolves with Shenzhen's social and economic development,especially in the context of the "special zone integration",it requires the municipal finance to provide better financial guarantee for the equalization of public services across the special economic zone.By using the kernel function and Theil index as tools,analyzing the current situation of the financial system and sorting the process of the financial system reform in Shenzhen,it is concluded that the office authority and expenditure responsibility is not matched with the financial rights between different districts and the former so-called inside special zone area and outside special zone area are unbalanced in financial rights,therefore,the corresponding optimizing solutions are put forward to promote the reform of financial system.