Economically Developed Areas At The Grass-roots Level Financial Dilemma And Its Way Out

Since the tax reform which took place in1994, with the centralization on financial rights, the central fiscal revenue got an improving increasement. However, some issues also turned out to be more and more highlighted, such as the financial difficulties in ground areas and the increasing income gap between different regions. The financial management system has gradually standardized, but there are still problems along the specific enforcement, especially the township finance. Township financial difficulties has become a serious problem in the current financial system in our country. Inspire of the kept trying efforts to make any improvement in recent years, to simply making transfer payments will not solve the long-standing problems of township government financial insufficiency and huge indebtedness.How to find a acceptable and significant solution in the national wide, is becoming a widespread call for counties and townships around the country. In view of this, this article put the township finance as the research starting point, with T city in Jiangsu province as an example, on the basis of widely collection, investigation and research of documents and datas, trying to make a specific analysis on the symptoms and cause of financial difficulties, and put forward a solution. The author raised the idea, that is, to solve the township financial difficulties, a developing economy, improving financial system, perfecting transfer payment and strict controls of debt shall be taken into consideration.