CHINESE VERSION OF FINANSIAL PROBLEMS
The reform of the financial system is one of the urgent tasks of economic reform in China. The primary events are scheduled to take place by the end of 2016, with a comprehensive reform to be carried out no later than 2020. In 2014 the country’s leadership adopted series of important decisions aimed at improving transparency, efficiency and controllability of the budgetary mechanism and center-local fiscal relations. The article investigates in detail the legislative innovations of financial relationships in China, analyzes the causes of unfavorable debt position of local authorities, as well as ways to improve it.