The prominent feature of the intergovernmental financial relationship in China is that the central government has the decision-making power, and the specific execution power and expenditure responsibility of the affairs are borne by the local government. The goal of the reform of division of powers and expenditure responsibilities is to build an effective and standardized local government governance model. Therefore, it is necessary to establish a division and coordination system for governments at all levels based on economic laws, so that governments at all levels perform three types of government functions well as a whole, and achieve the unity of diversity and consistency, flexibility and effectiveness.The implementation of reforms to adjust powers and expenditure responsibilities must be promoted by the use of external authority and the establishment of special institutions. The current direction of China's fiscal system reform is to adjust the central authority and expenditure responsibility. As far as China's reality is concerned, with the central government further concentrating part of its powers and expenditure responsibilities, and the general pattern of financial distribution basically unchanged, this means that central government departments should further concentrate on the direction of their financial use and reduce special transfer payments. Local governments can also focus on the direction of the use of their financial resources, thereby enhancing their autonomy in the corresponding fields.
