Abstract
Chinese fiscal reforms have continued in various forms. with the "1994 Tax & Financial System Reform"being a turning point. However, there still remain significant tasks involving the entire state system. including the political balance between the central government and local governments and the desirable government functions. Therefore. in this paper. I will examine the actual state of insufficiency of the functions as well as problems with the systems and structure causing such deficiency. while focusing on the actual state of central-local relation from the fiscal aspect.
The administrative and financial reform is being promoted in China. From the aspect of efficiency and decentralization. this movement is considerable. and also really important for the intergovernmental reform in China. The main point of this paper is to clarify the situation regarding promotion of enhancement of financial base. creation of a revenue source allocation system to ensure consistency in policies between central and local governments， and clarification of the division of roles. And how the "autonomous and self-responsibility" system should be created is also the key factor and urgent need. In addition. increasing transparency of public finance
(especially in local levels) is indicated as an essential issue for the reform in China. Therefore， I will
focus on the period after the "1994 Tax & Financial System Reform". and analyze the current state of central-local fiscal balances and financial transfer. as well as examine the budget system and administrative reform. Some experiences of fiscal and administrative reform in Japan are suggestive for the reform in China.
