Problems and countermeasures in the reform of finance and tax system;

Fiscal Situation,Fiscal Policy and Fiscal Reform-a review of some significant fiscal issues to be addressed in the Eleventh Five-Year Program of China;

From the financial point of view, this paper proposes some suggestions for raising peasant s income: (1) continue to progress the fiscal reform actively and stably, lighten the peasant s fiscal burden; (2) enlarge the construction investment in small towns, absorb the surplus rural labor force; (3) increase the agriculture investment and provide favorable circumstance to peasant.

Finance and taxation are the important means of national central macro-adjustment and macro-control and so this paper analyzes the influence of the finance and taxation system reformation on the central,local and enerprise economy.

However,the foundation of social harmony has being severely eroded by serious problems emerging in the current finance and taxation system including the lack of public services,shortages of financial support to basic-level adm.