L. V. NOVOSELOVA Doctor of Economics Institute of the Far East of the Russian Academy of Sciences Keywords: China, central and local budgets, new version of the Budget Law of the People's Republic of China, local government debts The high dynamics of state revenues and expenditures observed in China over the past twenty years has ensured a significant increase in people's welfare, rapid development of social and industrial infrastructure, active renewal of the industrial base, etc. These impressive results of rapid economic growth were accompanied, however, by the identification and aggravation of a number of serious problems in the financial sector. We can say that the Chinese economy has "outgrown" the current system of public finances. As a result, the state of the tax system and public spending, as well as the nature of financial relations between the central and local governments, in fact, do not correspond not only to the level of increased social obligations of the government, but also to the tasks of the PRC in improving economic relations. What path will China take to address these complex challenges? The study of this issue is not only of obvious research interest. After all, insufficient budget security, financial problems associated with an increase in the burden on regional budgets, with a decrease in their revenue, an increase in expenditure obligations and, accordingly, with an increase in the budget deficit - all these are characteristic features of the current problematic state of Russian regions. The growing budgetary risks of the Russian Federation's constituent entities are a cause for serious concern, especially against the backdrop of the current recession in our country's economy. In these circumstances, the Chinese experience of financial transformation becomes quite substantive and practical for us. KEY AREAS OF FINANCIAL REFORM The creation of a more efficient mechanism for managing financial resources looks particularly relevant given such ... Read more