Research On Effective Supply Of Rural Public Goods Under The Perspective Of Fiscal Decentralization

The economic development of our country enters the new normal and this transformation has a profound influence to all industries including agriculture, which provides an important strategic opportunity to agriculture and rural economic development. The new round rural reform of our country aims at abandoning the urban-rural dual structure system completely and establishing the integration development mechanism.In this process, the equal basic public services will become an important driving force and governments at all levels should hold the supply of rural public goods as policy focus, increasing investment and improving the comprehensive efficiency.According to the theory of fiscal decentralization, the effective supply of public goods should base on scientific and reasonable division model of governments and the governments at all levels should match corresponding property ownership on the basis of reasonable division of powers and spending responsibilities. This paper analyzes present situation and problems of rural public goods supply of governments at all levels, researches restrictive factors of the current China’s fiscal decentralization system to rural public goods in accordance with mechanism of fiscal decentralization in affecting local public goods supply,and puts forward corresponding countermeasures and suggestions.First of all, this paper reviews and makes a comment about research status and theoretical basis both at home and abroad, including the theory of rural public,the theory of fiscal decentralization, transfer payment theory as well as public choice theory.And than the paper summarizes enlightenment to the practice of our country, which lays a solid theoretical foundation for later analysis. Then the paper investigates China’s rural public goods supply system under the current system of fiscal decentralization, division mode of finances at all levels and the finance division system of supply of main rural public goods.On the basis of qualitative analysis,the paper makes a quantitative analysis about scale and structure of financial expenditure of rural public goods,after which we can draw a conclusion of various problems existing in the division of the government financial input.The problems are as follows:the level of rural public goods supply is relatively low, the governance division is not standard, not clear, lack of elasticity, the central expenditures at the corresponding level is low with too many affairs disposed by local governments in the name of the central government, the proportion of special transfer payments is large and the local matching funds are not available. After comprehensive analysis on the present situation of the rural public goods supply of our governments,the paper analyzes reasons why rural public goods supply is out-of-balance under the present system of fiscal decentralization and then sets forth of systemic effects of the fiscal decen-tralization on rural public goods supply from these three aspects including the external environment, internal system design and incentive system. In order to verify influence of fiscal decentralization on rural public goods supply, this paper applies the method of econometric analysis, establishing econometrical model with supply level of rural compulsory education, medical services and social security as dependent variables.Finally, based on the above research, this paper puts forward ideas and suggestions of optimizing effective rural public goods supply of governments at all levels.