Improve The County And Township Financial System

Counties & township finance is the grass-roots finance. It provides the solid support for the perfect operation of local government in counties and towns, the exertion of the corresponding function and the consolidation of the power. At the same time, it governs the scope of rural area and provides public goods to the peasants and plays a basic fiscal role. But recently, counties & township finance faces aggravating difficulties. Its direct result is the lag existed in the provision of rural public goods and the consolidation of the urban-rural dualistic mechanism. It also leads to the growing pressure that cause disordered fee charge of grass-roots finance and the burden of peasants heavier. It is one of the main factors of the slow rise of peasant's revenue. Obviously, the above factors are harmful for the realization of the common development of urban and rural area and are unfavorable for the achievement of the harmonious society. What's worse, it makes the grass-roots government instable. So it is imperative and of practical significance to adopt the effective measures to solve the problems counties & township finance faces.Accordingly, this paper tries to put up the suggestions concerning the perfection of China counties & township finance system on the provision of basic theory around counties & township finance and the related international experience of grass-roots finance.This paper includes four parts:The first part is the basic theory of the whole paper. First, it bounds the scope of counties & township finance. With the logic start point of the fiscal decentralization theory, it states the necessity; the appropriateness and the effectiveness of the set-up of counties & township finance system. That is the theory guidelines of the operation and perfection of counties & township finance.The second part depicts the situation of counties & township finance system.