Research On The Financial Management Of Rural Collective Economy In China

As a large agricultural country, our country attaches great importance on the development and stability of rural areas. In last few years, the No.1documents issued by the government every year are all about the "Three Rural Issues (the issues of farmers, countryside and agriculture)". Despite the increasing government investment on agriculture and the great development of the farmers’living standard in recent years, many contradictions and problems emerge in the process of developing in rural areas. The government has also been actively adopting various measures and solutions to the rural contradictions. The contradictions mostly concentrate on financial management. There are a lot of irregularities and confusion in financial affairs such as account confusion, the low quality of the employees, failures of making public its financial condition, arbitrary fundraising, a lack of effective supervision on village cadres’ spending, etc. Such irregularities and confusion aggravate farmers’ burden and strain the relation between cadres and masses, which consequently hinder the enforcement of state and local decrees. The state policy for the rural development is quite good, while the farmers in some areas cannot get practical benefit, hence the farmers’dissatisfaction to the nation and the party and the damage to the harmony of the society. Therefore, the proper handling of the rural financial work is the core and key of the construction of harmonious socialist new rural communities. Due to the defects of the system, deficiency of the management and other causes, there are a series of problems in village-level financial management which are badly needed to solve. The vocational quality of accounting staff is lower than needed. The relevant spending is quite arbitrary. The financial balance data are not made public. The examination and approval authority is not clear. The supervisory system doesn’t work well. The auditing system is but an empty shell. There is a lack of planning for financial revenues and expenditures, which makes it difficult to implement budget management. In some villages the financial management is of great randomness due to the lack of budget management or regulating system. Therefore, there are few income and great bad loans in the rural finance causing lots of financial problems. The rural financial management is tightly related to the stability of rural areas and the increase of farmers’ income. It also matters a lot to ensure farmers’exercise of democratic rights. Therefore, conducting relevant researches to standardize rural financial management system, strengthen the rural financial management supervision and increase the transparency of village cadres’ work are necessary and crucial to improve the rural financial management, enhance the farmers’ production initiative, help to solve "Three Rural Issues", strengthen the cadres’ self-discipline and improve relationship between cadres and masses. Domestic experts put forward suggestions on improving rural financial management, such as, popularizing democratic financial transactions systems and rural accountant assignment system, improving the quality of rural financial staff, establishing and perfecting the revenue and expenditure management system, making public the financial administration, reforming management mechanism, establishing Financial Group and Finance Management Office in the village committee, applying mandating mode of rural finance affairs, establishing of rural financial personnel responsibility system and financial approval system, etc.Firstly, why is it necessary to strengthen and improve the construction of rural financial management? Developing modernized agriculture plays an important role in the rural economic development, which is mainly reflected in the following aspects. First, it helps the rural areas to make public the rural government affairs, increase the financial transparency and enhance the villages’enthusiasm to supervise the financial management. Second, it helps the government to grasp the income and expenditure of comprehensively and accurately and ensure the smooth operation of the whole rural economy. Third, it helps to standardize the financial work and improve working efficiency. Fourth, it helps to change management thoughts.Secondly, according to the analysis of the situation and problems of financial management in Chinese rural areas, it has been decades of years since our nation started to establish comprehensive rural financial management system, but the developing pace is not very fast, the foundation is quite poor, and the effect is very not apparent. So far, Guangdong, Jiangsu, Hubei and other developed regions and the area of the Yangtze River has effectively strengthened rural financial management and fully implemented informatization. The financial management in some areas with relatively backward economy, and complex geographical situations is still quite backward, mainly due to limited economic and construction conditions. Although the developed areas attach great importance on rural financial management and obtain relatively high degree of informatization, they also have several problems such as non-standard management, vague operation mode and imperfect financial system.Finally, to solve the above problems, the paper suggests following solutions:to strengthen informatization in rural areas, to rationalize the management system, to perfect the supervision mechanism and strengthen management leadership. It also analyzes and summarizes the practices in Xiantao and recommends popularizing them in the whole nation.