Refers to the reform of policies relating to rural financial
management. The system was reformed in four key areas: supervision,
funds allocation, revenue sharing, and budgetary quotas. Where
previously county-level finance departments had to report to
city-level authorities, or where funds were allocated to them
subject to city-level allocations taking priority, they now come
under the direct supervision of provincial authorities. Likewise,
funds to be allocated to them are calculated independently of
allocations to the cities. The same applies to village-level
finances. They come under the direct supervision of county-level
authorities, bypassing township authorities.
Zhejiang Province was the first to implement the change in 2002,
followed by Hubei, Henan, Shandong, Jiangsu and Jiangxi
provinces.
(China.org.cn March 10, 2006)