Study Of County Financial System

In china; it has 5-level government and 5-level finance. The county township finance is the most basic two levels of finances in our country .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.As the same time; it governs the scope of rural area and provides public goods to the peasants and plays a basic fiscal role. However; the taxation reform of 1994 defined the boundary of the financial relationship between the national government and local governments. The financial relationship between each level of the local government has not compartmentalized definitly.This makes that county township finance faces aggravating difficulties; and also leads to the growing pressure and the heavier burden. 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 is worse ; it makes the basic government instable. So; it is imperative and of practical significance to adopt the effective measures to solve the problem of county township finance.Accordingly; this article tries to put up the suggestions concerning the perfection of china county township finance system on the provision of basic theory around county township finance and the related international experience of grass-roots finance.This article divides into five parts:First part: County township finance system theoretical analysis. This part introduces the meaning of the county township finance system first.Then; it also introduced the public goods theory, the transfer payment theory; the fiscal decentralization theory. That is the thoery guidelines of the operation of county township finance.Second part: County township finance system evolution course. This part introduces the financial system evolution course on time order. It mainly divides into three parts: First is the dividing into the system under "a stove eats meal" (froml953 to 1979).Second is the system of "a minute stove eats meal" (froml980 to 1993). Finally is the reform of division-tax system (from 1994 until now).Third part: Depicting the situation of county township finance system.This part mainly analyses the present existence question of county township finance and points out the necessity to solve county township finance question.Fourth part: International experience and comparison.This part broadly describes device of American; Canadian; Japan; including: the affair rights ; the funds rights and transfer. Summarizing some international experiences and the enlightenment; and obtaining the basic mentality of consummation county townshipfinance system.Fifth part: the basic ways of perfecting our county township finance system. It brings forward the general ideas about the improvement of the county township finance. Including: deterning the affair ringhts belongs to the county township finance reasonably; the reducing government finance levels; the consummation local tax system; reducing county township government debt; perfecting fiscal transfers system; improving the budget management system and the external environment of current county township finance system.