Abstract

To institutional economics theory analysis tool, through the financial system below the provincial level in each subject as well as the influence of changes in the financial system below the provincial complementary analysis of the system, designed to promote the financial system below the provincial level. Research and analysis concluded that: the progress of the financial system below the provincial level and effectiveness of the reform depends on the attitude and the main contest results, and, in the financial system below the provincial level, the government functions, government action and defuse financial risks such as a series of reform should be at the same time, the best priority. In order to promote the reform of fiscal system under provincial level, the writer analyzes the impact of subjects to the reform and the systems helping each other to fiscal system change under provincial level with the theory about Institutional Economics. The conclusion is that: first, the reform's extent and efficiency of fiscal system under province is determined by the attitudes of subjects to the reform and the result of haggling; second, during the reform of fiscal system under province, the reform such as governmental function, governmental behavior and keeping lookout fiscal risk must be carried out