On Reform of Local Fiscal Expenditure

In the course of China's market economic system in transition, the local finance is faced with inconsistency of income and expenses. On one hand, there exists inflexibility in increase of local financial revenue, and on the other hand, the imput of local financial funds cannot meet requirements in supporting and boosting the development of local economy and society, which results in its sluggishness. This is because financing train of thought of local government hasn't yet changed and the use of financial funds can't reflect the financing requirement of public finance causing Vacancy and Offside of finance , unable to give full play to function and influence of the government. So the local government ought to reform public expenditure, make use of local financial funds reasonably, solve the financial problems and bring local finance into play in supporting and boosting local economy and society.