On The Public Financial System Of Township Level From The Perspective Of Democracy

Since the 21th 90's, nearly most of the township governments have all plunged into financial plights: many township governments are confronted with financial crisis, economy burden on the peasantry are becoming more and more heavy, the relation between the township governments and residents of rural regions is more strained, the legitimacy of political rule of the nation is doubted universally in rural regions. Under the circumstance of township governments still existing, especially after the reformation of the agriculture taxes and charges or the cancel of the agriculture taxes, how to solve and to regulate the relations of economy interests between the governments and rural residents from the system so as to maintain favorably the run of the organizations of the townships governmental effectively and to guard the economy interests of the rural regions residents against the townships governments been encroaching is an inevitable problem in theory and practice .In the author's opinion, the emphasis on research into the institutional cause for the financial plights of townships governments should be transferred from the economic level to the political one, especially from the democratic perspective. Exteriorly, the difficulty of townships governments is because that the townships governments financial system has default, which regulates the economy interests relation between the townships governments and residents of rural regions, while the true reason, in fact, is that the democratic system is absent, that is to say, in economy area, it is townships public financial system that has been absent. So it's necessaryfor the nation to give the rights back to the residents of rural regions and to establish the townships public financial system that is based on the mechanism of public choice and centered as democratic rights of peasantry.Because of the research into the institutional cause for the financial plights of townships governments mainly from democratic perspective, firstly this paper analyzed normatively and positively some theory problems related to public financial system, such as the definition, character, essential of the public financial system, the mechanism of public choice in the course of public finance decision, the function and requirements of the financial division of power among all levels of governments and so on. And also the paper pointed out reference of the public financial system to the financial reformation of the townships governments. Secondly the assay introduced the plight of townships governments, evaluated the measures taken, pointed out the shortcomings of the measures taken, and then analyzed the institutional cause for the financial plights of townships governments and more economy burdens on peasantry from perspective of the democracy, proved the necessary of townships governments still existing, analyzed preliminarily the conditions of the mechanism of public choice in townships area by economic models in theory, given some advice of how to establish the public financial system in townships. Finally the paper brought forward the path choice of how to establish the public financial system in townships linking to the practice of townships level finance.