The reform of the fiscal system below the provincial level is related to national governance, and it is also directly related to the people's livelihood, so it is necessary to take a long-term perspective and make overall planning.
Further refine the plan to form a stable system in which governments at all levels have appropriate powers, expenditure responsibilities, and financial resources to facilitate high-quality development and the modernization of national governance.
The 25th meeting of the Central Committee for Comprehensively Deepening Reform, held recently, made arrangements for the further promotion of the reform of the fiscal system below the provincial level. The following transfer payment system.
After the reform of the central and local fiscal relations has been carried out in an all-round way and has achieved remarkable results, it is the right time to accelerate the reform of the fiscal system below the provincial level.
The financial system regulates the financial relations between governments at all levels and is one of the basic systems of national governance.
In recent years, the reform of the division of central and local fiscal powers and expenditure responsibilities has attracted great attention, and this reform, which is called "hard to crack", has continued to advance.
Reform plans for medical and health care, science and technology, education, transportation, and ecological environment have been introduced separately. The powers, responsibilities, and interests of the central and local governments are more unified, and the provision of basic public services is more guaranteed.
In fact, in addition to the division of fiscal powers and expenditure responsibilities, the fiscal system also includes the division of revenue between governments, the transfer payment system, etc., involving major issues such as how to distribute tax revenue among governments at all levels, who will do the work, and who will pay for the money.
Since the 18th National Congress of the Communist Party of China, the central and local financial relations with clear powers and responsibilities, coordinated financial resources, and regional balance have gradually been formed.
At the same time, the Chinese government is divided into five levels: the central government, the province, the city, the county and the township. In addition to the financial relationship between the central and local governments, there is also the issue of the reform of the financial system below the provincial level. be determined.
Since the implementation of the tax-sharing financial management system in 1994, all localities have gradually established and improved the financial system below the provincial level by referring to the practice of the central government.
Overall, there are still problems such as unreasonable distribution of fiscal powers and expenditure responsibilities between provinces, cities and counties, incomplete transfer payment structure, and relatively weak grass-roots financial resources. Modernization is not compatible.
After the reform of the central and local fiscal relations has been vigorously tackled and gradually straightened out, it is necessary to accelerate the reform of the fiscal system below the provincial level.
First, clear boundaries.
The meeting of the Central Deep Reform Commission required that "clearly define the fiscal powers and expenditure responsibilities below the provincial level".
If the division of fiscal powers and expenditure responsibilities is not clear enough, it will not be conducive to giving full play to the decisive role of the market in resource allocation, nor will it be conducive to better playing the role of the government and effectively providing basic public services.
For example, if the grassroots government undertakes too many affairs, it will lead to a situation of "small horse-drawn carts", and it will be difficult to provide basic public services in place.
Standardizing and clarifying the division of fiscal powers and expenditure responsibilities among governments below the provincial level should fully reflect the matching of powers and responsibilities, and mobilize the enthusiasm of governments at all levels, so as to implement the responsibility for providing basic public services and improve the efficiency of basic public service supply.
Second, protect financial resources.
At present, the central and local revenue division is relatively clear, while the sub-provincial government revenue division is relatively unstandardized and perfect.
Some problems are more prominent, such as the large contradiction between grassroots financial revenue and expenditure, and the pressure of "three guarantees" (guarantee basic livelihood, wages, and operation) in some places.
Therefore, it is necessary to straighten out the inter-governmental revenue relationship below the province, establish a reasonable and effective revenue division mechanism, improve the sub-provincial transfer payment system, and optimize the allocation of inter-governmental financial resources.
By guiding the sinking of financial resources and establishing a long-term guarantee mechanism for county-level financial resources, it is conducive to ensuring people's livelihood and solidly promoting common prosperity.
Again, avoid risks.
Fiscal powers and expenditure responsibilities are unclear, and inter-governmental fiscal relations are not smooth, which can easily lead to blind and disorderly borrowing and financing.
In recent years, my country has continued to regulate local government debt financing, but there are still many hidden risks. Rationalizing inter-governmental fiscal relations is conducive to preventing and resolving debt risks from the source.
As emphasized at the Central Deep Reform Commission meeting, it is necessary to consolidate the risk prevention and control responsibilities of local governments at all levels, and improve the long-term mechanism for preventing and resolving hidden debt risks.
By clarifying the responsibilities of borrowing and risk prevention and control, and adhering to the principle of "whose child is the one who holds it", moral hazard is prevented.
The reform of the financial system can be described as "one piece affects the whole". The reform of the financial system below the provincial level is related to national governance and directly related to the people's livelihood. It must be planned with a long-term perspective.
Within the framework of the central top-level design, all localities should further refine the plan, and form a stable system in which the powers, expenditure responsibilities and financial resources of governments at all levels are adapted to facilitate high-quality development and the modernization of national governance.