LongRiverTech Consulting：Overview of the Government Financial Management System

The government financial management system is a complex and important system, which involves the division of various responsibilities, powers and interest relations in the organization of fiscal revenue and fiscal expenditure activities. The following is an overview of the government financial management system:

I. Definition and Importance

The government financial management system, referred to as the "fiscal system", is a fundamental system of national fiscal management and an important part of the national economic management system. It mainly stipulates the responsibilities, powers, scope of fiscal revenue and expenditure, organizational principles, management methods and institutional settings of the central government and local governments at all levels, as well as the financial departments and other state organs, enterprises and institutions in fiscal management.

II. Main components

1. Budget management system: This is the core of the fiscal management system. It mainly divides the scope and management authority of budget revenue and expenditure at all levels according to the scope of responsibilities of the governments at all levels of the country, and stipulates the method of revenue and expenditure division.
2. Tax management system: It stipulates the responsibilities and powers of government agencies at all levels in tax management, including a clear division of tax types and tax exemption rights, and specific provisions on the authority of tax collection and management.
3. Administrative and public institution financial management system: stipulates the funding control authority and responsibility of state administrative organs and public institutions to complete their work tasks and business plans, as well as the scope and management form of funding expenditure.
4. Enterprise financial management system: stipulates the responsibilities, powers and interests between the state, enterprises and employees in the process of reproduction of state-owned enterprises in terms of fund management, cost management, enterprise income distribution and use.

III. Development process and current situation

China's fiscal management system has undergone a process of gradually shifting from a highly centralized unified revenue and expenditure management system to a centralized leadership and hierarchical management system. Since the founding of the People's Republic of China, fiscal system reform can be roughly divided into four stages, including the "unified revenue and expenditure" fiscal system from 1949 to 1978, the "contract system" from 1979 to 1993, the "tax sharing system" from 1994 to 2013, and the in-depth adjustment of the "tax sharing system" under the requirement of "building a modern fiscal system" from 2013 to the present.

However, the current fiscal system also faces some problems, such as the absence, overstepping and misalignment of government functions, the lack of detailed division of responsibilities between the central and local governments, the unreasonable distribution of responsibilities between local governments at all levels, and the imperfect current tax system. These problems need to be gradually resolved in future reforms.

In general, the government fiscal management system is a system that is constantly developing and improving. It is of great significance to ensure the stable growth of national fiscal revenue, reasonably allocate fiscal funds, and improve the efficiency of the use of fiscal funds.