Seek more details about changes in China's financial system. ...

China's financial system is mainly reformed around two contradictions: centralization and decentralization, activating local governments and strengthening central control. . .

Generally speaking, centralization is beneficial to the macro-control of the central government, but at the same time it leads to the decline of local financial autonomy, which is not conducive to the flexible play of government functions by local governments. Decentralization to local governments is beneficial for local governments to play their role, but it greatly increases the difficulty of central regulation. .

In addition, it also involves the rational use of financial resources and anti-corruption issues, which are more complicated. .

The following part comes from the paper, which is the changing course of China's financial system:

(A) planned economy period: centralized financial model

Before the reform and opening up, China's financial system was highly centralized.

"unified revenue and expenditure" model. In terms of fiscal revenue, except for sporadic income such as local taxes, all other revenues are placed under the central government. In terms of fiscal expenditure, the fiscal expenditure of governments at all levels is audited by the central government and allocated step by step. In terms of financial management system, all financial revenue and expenditure and revenue and expenditure procedures, tax system, capital supply standards and administrative establishment are formulated by the central government. At the same time, this financial system also includes state-owned enterprises, which pay all profits or surpluses, and the state meets the expenses of state-owned enterprises through financial allocations.

(2) Before 1994, the financial responsibility system: fiscal decentralization.

model

1978 65438+February According to the spirit of the Third Plenary Session of the Eleventh Central Committee,

China began to reform its economic system. The general idea of reform is to change the highly centralized management system in the past, delegate power to local governments and enterprises, and adjust the relationship between central and local governments and enterprises. From 1980, except for Beijing, Tianjin and Shanghai.

Cities continue to implement the system of "total sharing, unchanged for one year", and the central government implements the financial system of "two lines of revenue and expenditure, with different levels of responsibility" for all provinces and regions. After the local government completes the tax task, the tax revenue is dominated by the local government, and the over-planned revenue is divided by the central government and the local government according to the ratio of 1: 3. In terms of fiscal expenditure, the central finance and local finance spend separately.

The implementation of financial responsibility budget management system is a major reform and exploration of China's financial management system. Compared with the original financial system, the financial revenue and expenditure structure and the distribution of financial resources have changed greatly.

1983 and 1985, the state has implemented a two-step tax reform for state-owned enterprises. According to the tax types set after the second step of changing profits into taxes, the fixed income and the * * * enjoyment income of the central and local governments are divided, and the expenditures of the central and local governments are divided according to the affiliation, and the sharing, sharing and subsidies are implemented according to different situations. 1985, 1986, in addition to the central fixed income, the local fixed income is added with the income enjoyed by the central and local governments, linked with the local fiscal expenditure, and the proportion is determined and the total amount is divided.

1994 tax-sharing system: central financial model

1994, according to the division of powers between the central and local governments, reasonably determine the expenditure scope of finance at all levels; According to the principle of combining administrative power with financial power, taxes are uniformly divided into central taxes, local taxes and central and local taxes. Scientifically verify the amount of local fiscal revenue and expenditure, and gradually implement a relatively standardized system of tax refund and transfer payment from the central government to local finance; Establish and improve the hierarchical budget system and strengthen budget constraints at all levels.

In 2002, the central government greatly adjusted and improved the tax-sharing financial system, reformed the method of dividing income tax according to the affiliation of enterprises, and shared enterprise income tax and personal income tax between the central and local governments in proportion.

In 2003, a new round of tax reform was launched. The Third Plenary Session of the 16th CPC Central Committee made a plan of "implementing tax reform step by step", and put forward the principle of "simple tax system, broad tax base, low tax rate and strict tax collection and management". In September 2004, the transformation of value-added tax was piloted in eight industries in the northeast old industrial base, and in July 2007, the pilot scope was extended to some cities in six central provinces. On June 2008, 65438+ 10 1, the new enterprise income tax law was implemented. The new tax law includes the cross-jurisdictional distribution of tax revenue, and provides a new way to divide the income between the source and the place of residence (or the location of the actual management institution).

Throughout this series of financial management system reforms, basically all focus on expanding the financial power of local governments and mobilizing the enthusiasm of local governments' financial management, showing a more obvious trend of decentralization in financial system arrangements.