Study On The County Basic Financial Guarantee Of Gansu Province

As an important part of financial system, the county finance in China has drawnwide attention by academic circle and government departments. The presentdevelopment situation of county area in our country reflects that most of the county’sfinance is very poor, and it is very difficult for these areas to satisfy the demand ofbasic financial expenditure. Nowadays, the situation that the basic financial guaranteepower of county finance is very poor has become a restrictive factor for theconstruction of new socialist countryside and harmonious society. Therefore, ourgovernment must improve the county basic financial guarantee power and constructthe county basic financial guarantee mechanism. This will also be contributing to theconstruction of our country’s public finance system.The paper analyzes the government revenue and expenditure situation of countyareas in Gansu province. The conclusion is that the county financial in Gansuprovince is very poor and the own financial power is very weak, so the dependence tothe superior finance is very high. Then, the paper gives an empirical analysis for thecounty basic financial guarantee power of Gansu province by using the factor analysis.The result is that the county basic financial guarantee power of Gansu province isvery bad, and by comparing every county’s situation we find that the differenceamong these areas is very large, so the county basic financial between these countiesis disproportionate. Based on the analysis above, the paper analyzes the reasons ofthis situation from five aspects, mainly including natural environment、economicdevelopment condition、the distribution of resources、the population quality and thefinancial system. At last, the paper addresses some suggestions for how to improvethe county basic financial guarantee power of Gansu province. First, our governmentshould reform and improve the financial system further; second, the ministry offinance must improve and standard the system of financial transfer payments; third, the government should adjust the expenditures structure in order to improve the usingefficient of financial fund; forth, we must develop the county economy in order toimprove the financial income; fifth, the province must improve the quality ofpopulation. The county government must try their best to solve the problem of thecounty finance and improve the financial self-supporting power and the county basicfinancial guarantee power by using many different polices together.