Analysis On The Influence Of The Reform In Tax And Fee In Rural Areas To The Township Financial Ability

The reform in tax and fee in rural area is one of the important measures to solve existing problems in the issue of China's farmer, agriculture and rural area and to construct a harmonic society. This reform plays an important role in lessening the burdens of fanners and improving the relationship between cadres and masses on one hand, and exposes the formerly-hidden problems of township governments' financial ability and debts on the other. The inferiority of township governments' financial ability would inevitably bear unfavorable influences on the normal operation of the basic-level governments and the supply of rural public goods. Consequently, it is of significance to make an analysis on the township governments' financial ability after the reform in tax and fee in rural areas and to then put forward some policies.This thesis consists of five chapts. Chapt one is the introduction part which focuses on theoretical and practical significances of the selection of this topic and literatures relevant to this thesis. Chapt two introduces the situation of township governments' financial ability in China both before and after the reform, and especially deals with a deep analysis on the changes of township governments' financial ability after the reform. In Chapt three, taking the rural compulsory education system as an example, we analyze the influences of relevant policies on township financial ability after the reform in tax and fee in rural areas. Chapt four makes an evidence-based analysis on the financial transfer payment system after the reform and summarizes experiences about the transfer payment system in the reform and relevant international experiences as well. Chapt five is conclusions and suggestions of the thesis.One of innovations of the thesis is using township data and then analyzing changes of township financial ability after the reform in tax and fee in rural areas as well as effects of the centra] government's policies in strengthening the township financial ability. It is indicated in the thesis that the reform in tax and fee standardized the collection of taxes in rural areas and improved the income structure of township governments. Meanwhile, the author also points out that the enforcement of relevant complementary policies must be strengthened and the expenditure structure of township governments be improved to help township governments overcome the problem of poor financial ability in the end.