On the provincial governing county financial system

Summary: direct control of the county in recent years, China's financial reform is a hot topic in the financial management system. Direct control of the county financial system is the trend, more good than harm. This reform will have far-reaching economic impact will cities and counties. In the long run, will help our county's economic development, but the recent negative impact we have to actively resolve. the reform to local conditions, steadily advancing cautiously, can not engage in "one size fits all." The reform should actively experiment and actively improve the related measures.

Keywords: direct control of the county, financial system reform

June 2009, the Ministry of Finance issued a <<on the direct management of the county to promote the province's fiscal reforms comments>> explicitly put forward before the end of 2012 in addition to the country and strive to promote the province, autonomous region outside the direct management of the county comprehensive fiscal reform. This reform Not only is the adjustment of financial management level, it is a prelude to further deepen administrative reform, is a large-scale redistribution of rights and interests, so we should carefully analyze the advantages and disadvantages, while avoiding disadvantages, and promote healthy economic and social development .

First, the province's main governing county financial system
1 county financial difficulties in the management of the existing tax sharing system, the county (city-level financial authority and powers asymmetry, excessive financial dependents, county and township government debt burden, capital movement difficulties, many counties (cities to rely on provincial fiscal transfers in order to maintain the normal operation of government. county financial difficulties in the financial system for the province of counties into the power, by reducing the financial and administrative level to lower administrative costs, ease the financial difficulties of counties and townships has become a broad consensus.

2 city counties financial system of the state. 市管县体制 currently in place in China since 1982 is gradually formed. 市管县体制 for the county to promote economic development has played a certain role, but with the deepening of reform, municipal counties The financial system has created more and more conflicts, no longer meet the needs of the county to further economic development. First, the economic interests of contradictions. produce a major source of this contradiction is to level the city is not enough strong economic strength, a "county Ruoshi "type finance, plus some ground-level city under the jurisdiction of the county more than the number of population, area, city with a county with a fixed, city of the county's economic and social development is difficult to have a large tilt, support and help, on the contrary even to rely on the county's contribution to investment in urban construction, county-level city gravitropic increasingly concentrated wealth, a lot poorer in the county-level city in fact become the economic "pump", a "city scraping County", "City squeeze County" phenomenon followed by the contradictions between urban and rural areas. 市管县体制 is essentially a "heavy city, county light" of the administrative system, speed up urban development, but inhibit the development of county and township in this system, prefecture-level city focus on urban areas rather than the general county, municipal finance focused on urban development, county and township areas prone to "malnutrition", prefecture-level city to central city development, often retain jurisdiction of counties funds, resulting in widening the gap between urban and rural areas, rural issues deeply embedded.

3. Driven administrative reform through financial reform. China's current administrative system for the five, namely the central, provincial, municipal, county and township, while developed countries are generally used three administrative system. China's administrative system China caused by excessive administrative costs are too high, too much financial support and administrative inefficiency were not conducive to China's fast economic development. Province of China to implement the core financial system counties, is to reduce the level of financial management, the implementation of central, provincial, city and county levels the financial management system to achieve the flattening of the financial system by the flattening of the financial system to boost the administrative reform of the flat, the implementation of the central, provincial, city and county levels of administrative management system to achieve government streamlining and reducing administrative costs and improve administrative efficiency.

Second, the provincial financial management reform of the county
1 of the county's economy
Provinces county financial system's main purpose is to promote the county's economic development, promoting urban and rural harmony, accelerate the urbanization process, therefore, direct control of the county financial system for the county overall economic impact is beneficial from the long-term development , the implementation of provincial counties financial system reform, increasing the central, provincial transfer payments to the county's financial strength, and enhance the county's economic and financial resources. With the economic and social management authority to the County to enhance the county government the regulatory capacity to stimulate the vitality of the county's economic development, that will help county government initiative to promote the county's economic development. reforms by reducing the level of financial management, will reduce administrative costs, improve capital efficiency, while, on the deepening administrative reform to reduce the administrative level, to improve administrative efficiency, but also has far-reaching significance.

In the short term, direct control of the county financial system adverse effects on the county's economy there are four points worthy of attention. First, the only county-level financial management reform and the expansion of rights, but not all, the decentralization of economic management authority, but not administrative and social management of all delegated authority, the county's cities is still higher. This has created a county-level governments have two "mother" of the situation, it is necessary to go to the province, "run", but also to the city "run "led to the lack of coordination within the system running, and even contradictions and conflicts, so the county government at a loss, of administrative efficiency. Second, for some "strong weak county city" type where the financial, fiscal reform, the central, provincial and county-level financial support will be no major increase in the contrary, the municipal government will consider their own interests rather than increase the county government's financial input to make these financial weak financial difficulties facing the county, county government will have a "poorer than" feeling. Third, with the right to manage the expansion of county government, county government may bring investment impulses, resulting in the county development "everywhere" and "disorderly construction", so that overproduction, waste of resources is not conducive to the transformation of economic development. Fourth, the implementation of provincial governing county financial system reform, most of the provincial government County (more city, too broad range of management, management more difficult, however, may lead pipe to make county government oversight and restraint to some extent out of control.

(2) the economic impact on the City field
Direct control of the county financial system of the City in the overall economic impact is detrimental to the first, for some "Ruoshi county" type of financial areas, due to reform the financial outlook under the jurisdiction of the county around the city and county financial return Province in the direct management, municipal finance have lost focus on county financial power of these poorer cities worse, financial difficulties and second, after the reform was originally approved by the municipal audit of the financial management issues will be on the receiving province or delegated to the county, municipal authority will be weakened economic management, ability to integrate resources will be greatly reduced, the level of macro-control ability will be greatly reduced. Third, the reform of the central, provincial funding and investment arrangements will give priority to the county, focus on support of the county's economic development is not conducive to City in economic development. Fourth, the province directly to the county after the reform of financial management, will inevitably bring the province directly to the county administration and the gradual change in social management, permissions changes, functions Cross, redistribution of interests, the municipal government will bring all kinds of friction, thereby reducing the administrative efficiency, the fifth, with the provincial counties deepening administrative reform, cities and counties will be increasingly geographical boundaries more obvious, reform cities just a few of its area, the City in the economic development of smaller space, will inevitably limit the municipal tax base, increased financial resources, not conducive to the City in the economy bigger and stronger, not conducive to the City in the economy of the county's radiation driving is not conducive to the cultivation of a regional central city.

Links to free download http://www.hi138.com Third, the provincial financial management reform measures and proposals for the county
1 to adhere to local conditions, steadily advancing cautiously and avoid "one size fits all." Because of our relatively large size of the area is an economic development is uneven, multi-ethnic country, so direct control of the county financial system can not engage across the board. Over, according to level of economic development, infrastructure conditions and other relevant conditions, to determine the reform model, steps and progress has been comprehensive reform of the region, to closely follow the progress of the reform, to further standardize and improve. ongoing pilot areas, to sum up experience and accelerating. yet pilot areas, in addition to ethnic autonomous areas, to develop a pilot program as soon as possible, actively promote the reform.

(2) to adhere to scientific standards, reasonable and orderly, and further rationalize the division of powers between governments below the provincial and financial relations of distribution. In accordance with the requirements of the tax sharing system, according to a clear provincial, municipal (prefecture and county functions and powers, while a clear provincial, city ​​(county income and expenditure range. First, the provincial fiscal and financial resources to strengthen the regulatory role of the region, the implementation of provincial county (city of the "five direct", namely: direct funding, allocation of direct, direct indicators, direct billing, reporting direct, provincial finances to ensure that cities and counties on the basis of vested interests, cities and counties to increase financial guidance and support, adjust and standardize the provincial, city and county relations between property rights and powers to expand the county-level management authority, increase the county's weak financial support, to ease the financial difficulties of counties and townships. Second, the municipal finance in the provinces and counties to act as a bridge and link between the role of the county continue to bear the financial guidance, support and oversight responsibilities, in whatever case under the jurisdiction of the county (city) financial difficulties to continue to help. Finally, the county finance to take advantage of favorable external environment and economic development of autonomy, to strive for the central, provincial and municipal levels of government support, with higher levels of funding to support full and good, full and good use reform to give the policy to improve the efficient use of financial resources and administrative efficiency, to stimulate the county's economic development of intrinsic motivation, boost the county economy, county government must actively take the initiative with the Province , the reform of municipal finances to do the work, to enhance self-development, awareness of self-restraint, to seriously implement the fiscal reform measures to improve financial management in a scientific, precise level, the county finance budget accounts to establish a democratic mechanism, structure from the county public finance system, through its own efforts to actively alleviate the financial difficulties of counties and townships.

3 counties to establish a financial system with the provinces to match the supervision and management mechanism to avoid the sharp increase in the radius of the provincial financial management of the "management vacuum" problem. First, to implement the province of the county budget review system, strengthened from the source county-level financial guidance, management and supervision, complete control of the county finance the basic situation and advise the county financial management and reform, promote the county finance scientific and reasonable arrangement budget. The second is to establish a scientific province of the county assessment index system, the objective operation and evaluation of county-level fiscal effort. The third is to establish a scientific province of the county fiscal incentive mechanisms, to take excess return, to award and promote growth, Yijiangdaibu and other incentives to stimulate local alleviate the financial difficulties of counties and townships intrinsic motivation. The fourth is to strengthen financial management, information technology and accelerate the "Golden Finance Project," the pace of construction, building provincial and city and county financial information network, and strengthen financial management of the technological means to enhance financial management.

4 to adhere to actively and steadily, step by step, properly handle the balance of payments division, the base transfer and local debt issues. To clean up local government debt, some should be by the central government and provincial financial burden of public affairs, for example, due to compulsory education debt, food county debt should be decided by the central government and the provincial government to clean up and pay. to improve the transfer payment system as soon as possible, supporting the abolition of the practice, the establishment of incentive and restriction mechanism, make transfer payments to the laws and regulations of the refinement and improvement of working to plug existing loopholes to make the future work of the various aspects of transfer payments according to the law, and smooth execution.

In short, the direct control of the county's financial reform is to further rationalize the allocation of financial relations, to promote the county's economic development, alleviate the financial difficulties of counties and townships to conduct major reforms, but also a major interest adjustments related initiatives, all levels of government to unify thinking, strengthen leadership, co-ordinate planning, careful arrangements, robust operation, close attention to the reform of the new situation and new problems, strengthen investigation and research, in a timely manner, ensuring the reform actively and steadily push forward. References:
[1] Jia Kang, Yan-kun, improve the financial system below the provincial long-term thinking [J]. Management World, 2005, (8.

[2] Ministry of Finance. On the direct management of the county to promote the province's fiscal reform views (FB [2009] 78 document.

[3] Upon his talk about "provincial counties' fiscal reform [EB / OL]. People ,2009 -07-13.

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