Gao Peiyong, Zhang Bin, Wang Ning: The Establishment of China’s Public Finance Indicator System

China Public Finance Indicator System is set to evaluate the public process of China state finance. The establishment of public finance, although being built into a complicated systematic project covering all aspects of the reform of China’s fiscal system and the adjustment of functions, such as budget system, revenue system, expenditure system and government bonds system, sets its core to evaluate the development of the reform of China’s public finance system, other than the whole financial system or the financial operation. The evaluation system, not necessary to reach every aspect, should especially reflect both the public financial system and the public financial functions as well as the influence made by the fundamental systematic changes such as marketization, framework of constitutional governance and the shift of government functions.

After comprehensively clarifying the basic trains of thoughts, ten elements were chosen to describe public finance, which are the interference of government into market, the non-profitability of finance, the intensity of government revenue and expenditure, financial legislation, financial norm between governments, financial equalization, sustainability, financial performance betterment and financial internationalization. Accordingly, these elements can be divided into four phases.