Evolution of financial management system

Since the founding of the People's Republic of China, China's financial management system has undergone many changes. The general trend is to gradually transition from highly centralized management system to various forms of hierarchical management system under the unified leadership of the central government in accordance with the principle of "unified leadership and hierarchical management". Although there are various forms of hierarchical management, and the degree of centralization and decentralization is not the same, in general, the financial management system implemented in each period is mostly adapted to the needs of the political and economic situation and its development and changes at that time. Starting from 1980, the financial system of "two lines of revenue and expenditure and graded responsibility" ("eating by kitchen") was implemented.

The main contents of this system are as follows: according to the subordinate relationship stipulated in the economic management system, the income and expenditure scope of the central and local finances are clearly divided, and the income of enterprises affiliated to the central government, customs revenue and other central revenues are regarded as the fixed income of the central finance; The capital construction investment of the central finance, the working capital of central enterprises, national defense expenses and the business expenses of the central level shall be paid by the central finance; The income of local enterprises, salt tax, industrial and commercial income tax and other local income should be regarded as the fixed income of local finance; Local capital construction investment, working capital of local enterprises, various local business expenses and administrative expenses shall be paid by local finance. Later, the method of "revenue and expenditure division and grading responsibility" was gradually changed to the method of "total sharing and proportional responsibility".

The financial system of "two lines of revenue and expenditure and graded responsibility" has the following characteristics:

(1) In the past, "eating in one kitchen" changed to "eating in different kitchens", and the balance of local fiscal revenue and expenditure changed from the balance of the central government in the past to the balance of local governments.

(2) Fiscal expenditure is no longer centralized by the central government.

(3) The lump sum ratio and subsidy amount are changed to a certain five-year period. Because of the unification of financial power and administrative power, and the link between revenue and expenditure, "dividing the stove to eat" has better mobilized the enthusiasm of local governments. However, there are also some problems in the implementation: the central government has a heavy burden, it is difficult to balance revenue and expenditure, and the central government has not fully considered proper concentration in the allocation of financial resources between the central and local governments. Financial system reform and economic system reform are not synchronous, but one step ahead. After the implementation of the method of "two lines of revenue and expenditure, graded responsibility", some places blindly built for financial resources, thus affecting the overall economic benefits of the country. (1) The fiscal system of "divide the tax, approved revenue and expenditure, and graded responsibility" is implemented in most areas. Basically, according to the tax types set after the second step of tax reform from profit to tax, the central fiscal revenue and expenditure and the local fiscal revenue and expenditure are divided according to the affiliation. According to the local revenue and expenditure base, calculate and determine the new local revenue sharing ratio and subsidy amount, which will remain unchanged for five years.

(2) Fujian and Guangdong provinces implement the system of "unified contracting and unified distribution". The State Council decided that starting from 1980, Fujian Province will implement "two lines of revenue and expenditure, fixed subsidy and five years unchanged"; Guangdong province implements the system of "two lines of revenue and expenditure, fixed payment, unchanged for five years".

(3) In terms of fiscal revenue and expenditure, except for revenue and expenditure and customs duties of enterprises and institutions directly under the central government, the rest are managed by local governments. The financial management system of "tax sharing, checking revenue and expenditure, and grading responsibility system" has mobilized local enthusiasm, but there are also some problems, mainly because the enthusiasm of regional organizations with more income and a larger proportion of income is not high, and even the income of some areas has declined. Therefore, starting from 1988, the State Council implemented the "fiscal responsibility system, which will remain unchanged for three years" to further mobilize the enthusiasm of these places. After the reform and opening up, China's financial management system has also undergone corresponding reforms. 1993, 15 On February 5th, the State Council issued the "Decision on Implementing a Tax-sharing Financial Management System". Since June 5438+0994, China has implemented a tax-sharing financial management system.