County governing the implementation of provincial fiscal reforms to deepen the reform to take an important step
Ministry of Finance announced on the 9th the “provincial governing county” financial reform, made clear that before the end of 2012 in most parts of the country to promote this reform. Analysts believe that, “provincial governing the county” to promote a comprehensive fiscal reform, marking the deepening of China’s an important step in taxation system reform.
“As China’s reform of local government bodies to promote and deepen the fiscal and taxation system reform an important component of the ‘provincial governing counties’ comprehensive fiscal reforms to improve government operations to promote efficiency and reduce the level of government administration, as well as reduce the financial burden on the Government of great significance.” Party School of the CPC Central Committee Zhou Tianyong, deputy director of Research on the 9th in an interview with reporters said.
“Provincial governing the county” to speed up China’s financial reform is the reform of local government bodies to expand the county to enhance the development of autonomy and the capacity of county and township financial security an important measure. Reform of the Ministry of Finance issued in accordance with the views of the county to promote the direct management of the provincial fiscal reform, focus on straightening out the province following the allocation of intergovernmental fiscal relations, and promoting the city to speed up the county government functions, and better delivery of public services, to promote comprehensive, coordinated and sustainable economic and social.
Reforms proposed by the “provincial governing the county,” the main elements of fiscal reform, intergovernmental revenue and expenditure in the division, transfer payments, financial exchanges, Budget and Final Accounts, year-end, etc., to achieve the provincial finance and city and county financial direct contact to carry out work-related businesses.
News from the ongoing implementation of the “county governing provincial” fiscal reform that the Jiangxi Provincial Finance Department, in order to protect vested interests at all levels remain unchanged under the premise of the pilot counties and cities in the province to determine the income of the plan, transfer payments, financial settlement, financial aspects of the work of scheduling eight provincial-level financial direct order and requested the county at the municipal level to support the original unchanged, thereby increasing its financial support for cities, counties and cities to increase the capacity of financial security.
It is learned that, in order to speed up “the county governing provincial” fiscal reform, reform in Jiangxi Province, will be expanded to 80 counties, bringing the province of all counties (cities) all included in the scope of reform.
Jiangxi Province of the Department of Finance said that in recent years through the pilot “county governing provincial” fiscal reform, would effectively guarantee the timeliness of financial resources at the county level in full supply, and enhance the protection of the county-level fiscal capacity, and further stimulate the county economy the development of the inherent vitality and power. In addition, the reform of the financialɨǸʐalso traveling light, so that more energy and financial resources to developing the economy and the financial strength and better city to play a regional center of radiation for the other counties and cities to accelerate development.
Ministry of Finance Finance Division, said Jia Kang, director, speed up the transformation in the way of economic development, emphasizing the broader context of scientific development, China’s accelerating, “the county governing provincial” fiscal reform, intended to deepen the fiscal and taxation system, to promote sound public finance system faced by deep-rooted problems, including the controversial issue of the central and local authorities with the financial division of the problem of improving the transfer payment system, the system below the provincial level and the grass-roots level to increase the area of public service investment.
China’s current “municipal governing county” system is gradually taking shape since 1983, and this model over the past 30 years, to some extent, played a combined urban and rural governance and the functions of the city with the county, but with the county economy the development of their county’s economic development has become more and more restricted. As a result of financial inter-level “power center of gravity down, focus on property transfer,” China’s grass-roots level, especially county and township finances further highlights the financial difficulties.
Zhou noted that China’s grass-roots financial difficulties led to a financial level because of too much, thereby increasing the financial burden. China’s existing financial rating for the “Central – Province – City – County – Rural” 5, while international experience has shown that the more common financial arrangements at the tax classification system is not the more than three.
In this regard, Jia also noted that accelerating the country’s including the “provincial governing the county” and “rural county fiscal control,” including the financial system, is the manifestation of the Government’s intention to simplify the financial level. The long run, to shape the rules of market economy in line with the “Central – Province – cities and counties,” the three-tier tax classification at financial institutions and central and provincial levels of transfer payments from the top down is to say in our country at all levels of government a clear and reasonable, genuine financial difficulties the grassroots level, improve the allocation of the existing inter-governmental fiscal relations between the way the root of the problem.
For the next step of our implementation of the “provincial governing county” reform proposals, Zhou pointed out that as China’s “provincial governing county” is still in the exploratory stage of reform, the Government must be firm on the one hand, the objectives of the reform task, long-term goal is to achieve the three-tier financial management system and three levels of government; on the other hand, it is necessary to see the difficulty of reform be implemented step by step, and gradually push forward reform. In addition, it is necessary to actively and steadily resolved “provincial governing the county” and “rural county fiscal control,” the reform of the problems that might arise, such as the rural level and county-level financial debt problems, so as to ensure the smooth progress of reform.
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