The report of the Twentieth National Congress of the Communist Party of China proposed that we should adhere to the principle of doing our best and acting according to our ability, go deep into the masses and grass-roots units, take more measures to benefit the people's livelihood and warm their hearts, focus on solving the people's urgent problems, improve the basic public service system, improve the level of public services, enhance the balance and accessibility, and firmly promote common prosperity. National finance is an important way for the government to participate in the distribution of national income. It is self-evident that the steady and healthy development of finance is important to "solidly promote common prosperity". The special report issued by the China Macroeconomic Forum (CMF) on November 9 focused on "local financial operation and financial system reform". When analyzing the local financial structure, the report especially pointed out that the land transfer income from the government fund income is not completely at the government's disposal. About three quarters of this income belongs to cost compensation expenditure. For example, the compensation for the relocated farmers cannot be used as the government's own financial resources. The report points out that fiscal revenue mainly depends on taxes, and local tax revenue comes from value-added tax, enterprise income tax, personal income tax, deed tax, land value-added tax, urban maintenance and construction tax and other major taxes. If these tax sources are in trouble, local fiscal revenue will decline. In addition, the reasons for the pressure on local finance include fiscal expenditure, fiscal policy and fiscal system. For example, the large-scale tax and fee reduction policy since 2013 is expected to add 2.64 trillion yuan in 2022 alone. The large-scale tax and fee reduction has had an important impact on local fiscal revenue. According to the report, after difficulties in local financial operation, various regions have adopted different solutions, such as activating idle state-owned assets, mineral resources, and the management right of scenic spots, but some problems have also arisen in this process. In order to correct the wrong tendency in the process of solving financial difficulties in various regions, the Ministry of Finance issued the Guiding Opinions on Revitalizing the State owned Assets of Administrative Institutions on October 25. While encouraging the acceleration of the revitalization and utilization of various state-owned assets of administrative institutions, it also made clear that it is strictly prohibited to dispose or falsely trade the state-owned assets of administrative institutions that do not need to be disposed of in the name of revitalizing assets in order to falsely increase financial revenue in disguised form. Previously, on September 24, the Ministry of Finance also issued the Notice on Strengthening the Management of "Three Public Affairs" Funds and Strictly Controlling General Expenditures, stressing that it is strictly prohibited to reserve land by borrowing, not to increase the income from land transfer by means of state-owned enterprises' land purchase, and not to increase the financial revenue by name to make up for the gap in financial revenue. We will continue to rectify illegal charges, resolutely prevent excessive tax collection, put an end to arbitrary charges, fines, and apportionments, and do not increase the burden on market entities. The report proposes to solve local financial difficulties by adjusting the financial system. First of all, it is necessary to transform the functions of the government, straighten out the relationship between the government and the market, the government and society, stimulate social vitality and reduce the pressure on government expenditure. For example, if the supply of public goods can be handed over to the market government, it should not interfere. Some mixed public goods can be provided by the government and society in cooperation. If the government undertakes too much, the corresponding fiscal expenditure will increase. Secondly, it is necessary to reasonably divide the functions of governments at all levels, and define the government authority and expenditure responsibility according to the positioning of government functions. Administrative power includes decision-making power