According to McKinney,the elementary premise to the sustainability of deepening financial reform in developing countries is the steadiness of domestic macro-economy,which implies rationalization and standardization of government income structure,in other words,the composition and acquisition of government revenue in developing countries should not spark off potential serious unsteadiness in price levels.As an exploration of the general economic environment of the furtherance of China’s financial reform,firstly this article,based on the above theory,will make a descriptive statistical analysis of the basic status quo and each part of constitution of China’s government revenue.Finally,in order to include at the same time many factors in what is to be considered and in order to prevent the problem of collinearity between variables from cropping up,we will use the technology of analyzing the principal elements to dissect the impact of each part of composition of China’s government income upon price levels.
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