This paper proceeds from Qinghai s reality,explicates about the specific policies and methods of how to make overall plans and configure the financial resource,exert financial functions and advance the economy and society to soundly and rapidly de-velop.

By dealing with the problem of capital deficiency concerning agriculture, rural areas and peasants, the paper proposes a new approach for strengthening the financial function of the government in the development of western China, that is, issuing local government bonds.

Therefore the financial function should be transformed as soon as possible,including defining objectively limits of expenses,increasing the supply of efficient public products,improving social system of income and distribution and social ensuring system,strengthening adjustment about income and distribution,making marke.

Thereafter,according to the theory of mutual relationship between the financial functions and institutions,suggestions of the county financial innovation are put forward on the basis of the reposition of the recent county finan.

It concludes that it is necessary to upgrade budget accounting personnel to accommodate the demands of the institutional reform on financial functions through proper training.

Reflection on the Theory of Fiscal Function;

A correct understanding and analysis of our country s two mainstream fiscal theories,"State Distribution Theory" and "public finance theory",in which national and fiscal functions are discoursed upon,can help to guide the regulating of the national fiscal expenditure structure.

Therefore, it s the first step to clarify the fiscal policy objective and properly define the fundamental content of the fiscal function.

Thought on the Fiscal Functions Evolvement in East and West;

The practice of reform and opening up indicates, the fiscal functions under the planned economy system have already not accorded with the intrinsic requirement of the development of market economy.