Lan Foan: Optimize the relationship between central and local finances and improve the system of fiscal transfer payments.

In the recently published "Guidance manual for the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development," Minister of Finance Lan Fuan wrote an article titled "Playing the role of proactive fiscal policy." Lan Fuan pointed out that during the "15th Five-Year Plan" period, it is necessary to optimize the tax system structure, improve local taxes, and the system of direct taxes, in order to better utilize taxes to promote high-quality development, social equity, and market unity. It is also important to optimize the relationship between central and local finances, improve the system of fiscal transfer payments, increase local financial autonomy, and ensure the bottom line of the "three guarantees" at the grassroots level.