Research On The Financial Autonomy Of Town

Along with the rapid development of the market economy, economic power of towns is enriched and strengthened, yet its problem had been from the"financial difficulty"to the other bottleneck, which is the limitation and restrain of financial management system. To proceed with the governmental functions and financial functions of towns and combine with specific circumstance of S town, prominent problems of towns'finance are analyzed, and the common towns'measures to get rid of the developmental bottleneck are discussed comprehensively.The paper is composed of five parts:Part I: introduction. Research background, purpose and meaning are introduced. Literature review is narrated, and the research thinking, methods and frame are listed.Part II: correlative concepts interpretation. Explanation concepts are finance of town, functions of the finance of town, the developmental process of the system of town finance from the establishment of the new China, such as the phase of commune finance, the phase of system transition, the phase of multiply systems, the phase of dividing revenue and expenditure, the phase of exploration of tax distribution, the phase of the reform of taxation expenses, the phase of resident of agricultural taxes, etcetera. And based on the association of the financial functions with the governmental functions, the financial functions of town are analyzed. Form the foundation of theory, the characters of finance of town of China are listed, namely the diversity of income and expenses, the autonomy of income and expenses, distinctions of the area, periods of the income, specialty of expenses. The obvious problems are discussed in detail to take the level of economic development as the criterion. Lastly, the concept of financial autonomy of town, significances, and measurement criterions are analyzed.Part III: analysis of financial autonomy for S town. This part is positive analysis. Financial conditions and economic development are stated, and S town's particularity is researched further. Based on its financial conditions, the significance of financial autonomy for S town is analyzed from generality and specialty. Generally speaking, the general significance of financial autonomy applied to S town; specially speaking, it's so special influence and significance of financial autonomy of S town, especially the developed towns to take S town as the example.Part IV: analysis of restrictive factors of financial autonomy. The first factor is the level of economic developments, including of the level of economic technology ad the decisive factor and the dual economic structure of urban and rural areas as the primary factor. The second factor is the system of the financial distribution and the tax collection and management. The third factor is the hysteretic reform of administrative system, and the contradiction caused by the hysterics.Part V: measures to improve the financial autonomy of towns. Five aspects are included. First, the establishment of legal finance is the legal guarantee of financial autonomy, meanwhile, financial democratization is indemnification of financial autonomy, therefore, the establishment of legal and democratic finance is also essential. Second, the main responsibility of Government is to provide people with public products and services, then to determine the responsibility of the intergovernmental fiscal expenditure. Third, improvement of economic development and urbanization are two aspects to optimize the path of economic development, and develop the leading industry actively. Fourth, rational allocation of public resources can only the direction of development of finance toward meeting the people'demand in public products and services. Fifth, optimize the functions of supervision and management of towns'finance. We should deepen reform of financial management of town, deepen the reform of departmental budget and performance budget management, establish a sound financial supervision system, and improve the efficiency of financial supervision and management effectively.PartⅥ: Systematic and brief summary of the above five chapters, and proposed the prospect of further study.