Local Public Finance'Difficult Status and Its Way out

Under the continual international financial crisis, public financial revenue of different areas decreases in different degree. In order to fight againt financial crisis and keep on the economic growth and development, the local governments are increasing their financial expenditure, which makes local public finance fall into unprecedented dilemma. To find a way out of the dilemma, the following measures should be taken: to enhance enterprises’capability of independent innovation; to reform the relations between central and local government by correctly determining their property and power; to issue local bonds; to optimize the structure of financial expenditure and strictly control administrative expenditure to achieve itszero growth.