On Township Debts In Guangdong Province After Abolishing Agriculture Tax

Currently,our laws and regulations have stipulated that local governments including township governments are not allowed to raise loan by themselves.However,it is a widespread phenomenon throughout the country that township governments are in debt.As to Guangdong province,these townships mainly concentrated in underdeveloped mountain area.In 2006,agriculture tax was abolished nationally,which had made the debt problem especially of less developed townships worsen and more clearly exposed.Whether township debts can be properly resolved,is directly related to the development of agriculture,the increase of farmers' income,the rural stability,and the overall situation of national development.Therefore,it is of great significance to explore a reasonable way to resolve the debt problem.In order to understand the problem of township debt in Guangdong accurately,the author visited a number of towns,and did an in-depth research on one town's debt,including its present scale,structure,usage and its risk.Then,according to the basic strategy of putting forward,analyzing and solving problems and combined whit the reality of Guangdong province,this paper used township debt and the related theories to make a detailed analysis of the formation causes,existing problems and countermeasures of township debts. The township debts in Guangdong Province present several characteristics,like large total quantity,distinctive regional difference,high ratio of educational debts and short of paying resources.This article holds that there are four main causes of Guangdong township debts: the economic factor,the administrative factor,the financial system factor,and the impact of tax-sharing system reform.Currently,the main problems are reflected in dilemmas of the resource,the subject and the stability consideration.Through the above analysis,this paper argues that the solution of township debts needs not only the national macro-policy reforms—including developing urban and rural economy coordinately and accelerating the township structural reform and financial structural reform, but also local government's efforts—on the principle of "find out the old,clear responsibilities,treat differently,resolve gradually",broadening sources of income and reducing expenditure,restricting management and establishing a reasonable debt management system,and taking effective measures to solve the existing debts.