The first is to improve the budget management system. Budget management system is the basic system of modern state governance and the basic requirement of a country ruled by law. "A country's ability to govern depends largely on its budget capacity". At present, China's budget approval includes income, expenditure and income and expenditure, but the core is the balance of income and expenditure, not the scale and policy of expenditure. The decision pointed out that the focus of budget examination and approval should be expanded from balance and deficit scale to expenditure budget and policy. The major policy shift revealed by this principle is that taxation is no longer a task decided by the budgets of governments at all levels, but an expected goal. This is conducive to the tax authorities to collect taxes according to law, and avoid the drawbacks of the system of overpaying or underpaying in order to complete the task. Not only that, this principle breaks the inherent tendency of "paying more attention to income than spending" at all levels of finance, which is helpful to further optimize the financial expenditure structure of governments at all levels and help taxpayers judge the scope, quantity and quality of public goods and services provided by the government to members of society. In addition, the "Decision" pointed out that it is necessary to establish a cross-annual budget balance mechanism, an accrual-based government comprehensive financial reporting system, and a standardized and reasonable central and local government debt management and risk early warning mechanism to provide an important mechanism guarantee for enhancing the scientific nature of the budget and the effectiveness of its implementation.

The second is to improve the tax system. Taxation is the basic form of government revenue, the foundation of national existence and public governance, and the basic tool for implementing macro-control and adjusting income distribution. The key contents of deepening the tax system reform put forward in the Decision include: comprehensively promoting the value-added tax reform and even extending the value-added tax to all service industries, including real estate in the scope of value-added tax deduction, and establishing a standardized consumption-oriented value-added tax system; Promote the reform of consumption tax, adjust the scope, links and tax rates of collection, and further play the regulatory function of consumption tax; Speed up the pace of real estate tax legislation and reform, and increase the tax on retention links; Promote the reform of ad valorem collection of resource taxes, promote the change of environmental protection fees into taxes, and further play the role of taxation in promoting resource conservation and environmental protection; Accelerate the improvement of supporting measures for personal income tax collection and management, and gradually establish and improve a personal income tax system that combines comprehensiveness and classification.

The third is to establish a financial system that is compatible with the expenditure responsibility. The division of power is an important prerequisite for the effective operation of modern financial system. At present, the division of powers and expenditure responsibilities between the central and local governments is unclear, unreasonable and irregular. Some matters that should be the responsibility of the central government are handed over to local governments, and some matters that are suitable for local governments are undertaken by the central government. The central government subsidizes local governments through a large number of transfer payments, which objectively affects the autonomy of local governments. Therefore, it is necessary to design a detailed list of the powers (expenditure responsibilities) of the central, provincial, municipal and county governments from coarse to fine, and list their exclusive powers and their * * * commitment plans, and gradually optimize and refine them in the future. On the basis of defining the division of powers between governments, define the expenditure responsibilities of governments at all levels and clearly divide the income between governments, and then adjust the financial surplus and deficiency between lower and higher governments and between different regions by means of transfer payment to make up for the financial gap existing in the performance of powers by local governments, so as to realize the adaptation of powers and expenditure responsibilities. On this basis, we should maintain the overall stability of the existing financial structure of the central and local governments, combine the tax reform and consider the nature of taxes, and further rationalize the income division between the central and local governments.