Guizhou Province, County And Township Financial Reform Study

Building a new socialist countryside is a vital content in "Suggestion on China's 11th Five-year Period (2006-2010) for Economic and Social Development by the Central Committee of the Communist Party of China" and "Report to the Seventeenth National Congress of the Communist Party of China". Building a new socialist countryside is a systematic project. Important contents to promote the reform of building a new socialist countryside are as follow: the reform of rural taxes and fees, financial system reform of county and township, management system reform of rural compulsory education. Financial revenue of county and township is an important basis for the reins of grass-root government, and it is also the key difficulty and the weak part in terms of finance development of many provinces in our country. Currently, financial difficulty of county and township has become an outstanding problem troubling local financial and economic operation, and it also has become the key point and difficulty as for the financial work.. Financial difficulty of county and township not only has affected coordinated development between urban-rural areas and regions, but also has affected the stability of grass-root government due to the tension of mass-cadre relationship. Many provinces and cities have attached great importance to it. All sectors of the community also have paid attention to it. It is high time to solve financial difficulty of county and township.Guizhou province is situated in the southwest of our country. The level of its economic development is low and it belongs to a province with financial difficulty in the western region. The following points represent the present financial .situation of most counties and townships in Guizhou province: backward and uneven development of county economic; imperfect financial system; asymmetric relationship between financial resources allocation and expenditure responsibility; slow growth in finance of county and township and financial difficulty. Although Central Committee and finance of provincial level have given a lot of financial transfer payments, finance of most counties and townships is still very difficult in Guizhou province. For instance: slow growth in financial revenue; the shortage of local available financial resources; heavy pressure of rigid expenditure and heavy historic debt burden. It is of great significance to speed up the advancement of Guizhou financial management reform-"county government manages the township finance and the township uses its wealth"; sharpen grass-root financial self-support capabilities of county and township in Guizhou province; safeguard the funds required by the normal operation of grass-root political power; promote the development of urban and rural areas in Guizhou; develop and strength rural economy and improve farmers' income and welfare. It is a problem required to be solved by Guizhou fiance at the present time and in the coming period.