On the Construction of Basic Finance Theory in a National Governance Modernization Framework
Social Sciences in
No.12, 2014
On the Construction of Basic Finance Theory in a National Governance Modernization Framework
(Abstract)
Gao Peiyong
The Third Plenary Session of the 18th National Congress of the CPC produced a totally new theoretical summing up around deepening reform of the fiscal and taxation system. This marks an important breakthrough in the construction of basic finance theory: It orientates finance as the very foundation and support of national governance, making it a significant component of the national governance system and fundamentally placing the fiscal and taxation system in its rightful place. As a point of convergence for all fields of reform, the emphasis placed on fiscal and taxation reform in the comprehensive deepening of reform has made it a breakthrough pioneering practice, clarifying the relationship between reform of the fiscal and tax system and the comprehensively deepening of reform at the macro-level. It is based on the interlinked relationship between the modern fiscal system and the public fiscal system and on the requirements of overall planning and top-level design. Overall, it outlines the basic form of a modern fiscal system with the three major characteristics of being public, non-profit and the rule of law.