The Institutional Analysis Of Village And Town Finance--In The Case Of Jiangxi

The village and town finance is the most basic level in Chinese fiscal system, which is a important pattern that allocates resources in rural area. It plays a great role on developing countryside economy, promoting peasant's life condition and stabilizing the social order. Since 1983, it has made tremendous achievements. But there are many problems that hinder it's function. So it is an imperative work to the people in theroretical profession and practitioners to reform some outmoded and irrational rules and regulations, so as to build a better fmace procedure which should to be fit ted the market economy and adapted to the framework of the public finance theory.According to the theories on the public goods and the fiscal decentralization, this dissertration gives a new explanation on the responsibility of the finance in village and town. The dissertration has a opinion that the responsibility of the village and town finance is to provide public goods on the basis of scale benefit and benefiting area. At the same time, the thesis introduces the theory on the institutional change to supply an analytic framework that conform to realization.Because there is high homogeneity on the financial condition of villages and towns in china, besides the east area, and Jiangxi province is a typical agriculture area, the thesis thinks it practice to use the village and towm of Jiangxi as sample to analyze the whole country. Meanwhile' putting to use some national data, the dissertration concludes that village and town finance is in dilemma.The first step to deal with the problems of village and town finance is to find the right roots. Applying the theory of institutional change, the thesis analyzes the institutional environment and institutional arrangement of the village and town finance to try to search the sources that lead it to predicament. For the institutional environment, the reasons are: a. governmental dictation deviates the normative responsibility; b. intra-governmental division of function is unclear; c. the administration system results that behavior of cadre in village and town government depart the peasant's benefits; d. supervisal system is incomplete. As for institutional arrangement, the main factors which restrict finance department to play their functionis the division between the distribution right of the financial resources and assignments, yet the unreasonably limits of receipts and payment range is in the same case.Thus, the thesis put forward the way to deal with the village and town finance in dilemma. Aiming at the limited autonomy in village and town, government should carry out fiscal decentralizational reform through three stages to realize positive circle gradual among government, peasant, society, village and town finance.Basing on positive analysis, the dissertation use normative analysis to research village and town finance.