The Problems of Current Fiscal Distribution and the Countermeasures

Since the reform and opening-up, China has scored great achievements in its public finance; however, there are also many problems: 1) the running-on deficits and the beyond-internationally-recognized-safety-line indexes of treasury bonds; 2) the unsuitable distribution between the central government and local governments, the unbalanced relations between financial rights and duties of local governments, and the fiscal difficulties of the governments at county and township level; 3) the comparatively weak adjusting function of public finance, the growing gaps among the incomes, etc. In order to solve these problems, in my opinion, we should take the following two countermeasures: to change the fiscal policies and to deepen the reform on fiscal structure.