The Reconstruction Of Village-town Fiscal System In China

The operation of village-town finance not only restricts the implementation of the functions of village-town government, but also affects the operation of upper finance or central finance. In China, the research on the issues concerning agriculture, countryside and farmer would become incomplete in the absence of the research on village-town finance. In China, the village-town finance has been in serious trouble since 1990s. The reason is the lag of construction of villages-town fiscal system. So, the solution of the problem is fiscal system innovation. Starting from the current development of village-town finance in China, basing on the theory of public finance in market economic and the practical experience in foreign countries, the article firstly defines the functions of the village-town government, which is the logical starting point of the research. It's because that many problems in the operation of village-town finance can be found in the disordered functions of government. Second, according to that functions of government is the premise of the positioning of finance, the article defines the basic functions of village-town finance through the analysis of the rationality and necessity of its establishment in both logic and practice. Third, basing on the definition of fiscal system, the article illustrates the meanings and characteristics of village-town fiscal system in China and analyzes its system deficiency. Fourth, the article emphatically analyzes the adjustment of the structure of fiscal expenditure in the transformation from the "economic development-oriented finance" to the "public finance" after studying the effect of the Tax-fee reform in countryside on the fiscal revenue. Lastly, the article schemes the reconstruction of village-town fiscal system and the corresponding measures at the framework of public finance.Chapter 1 Introduction The chapter illustrates the background, purpose, significance and methods of the research. It also narrates and evaluates the dynamic research at home and abroad and the possible innovation of the research.Chapter 2 The evolvement of village-town regime and functions of the village-town governmentThis chapter shows the four stages of the evolvement of the village-town regime since the nation's foundation. The four stages are: coexistence of village regime and town regime, town regime, the people's community regime, town regime with village autonomy. The article divides the local governments into middle governments and grass-root governments through the comparison among three representative definitions of local governments at home and abroad. According to this classification, the article illustrates the current governments at different levels and the characteristics of their functions. At last, the article shows that the "standardized" function of village-town government is to supply public goods and services needed by its residents. Chapter 3 Village-town finance and its functions Logical analysis shows that efficiency is optimal when local public goods are supplied by village-town finance. And the practices of establishment and development of village-town finance in China also shows that village-town finance plays an important role in solidifying rural regime and supplying suitable public goods and services to the residents. Village-town finance is not the simple copy of the fiscal function in common sense since it has its own feature compared with the other four finance at different levels. This chapter is based on the theory that the functions of finance can remedy market failure and meet public needs. Then it brings forward the conclusion that function of village-town finance is to supply public goods and services to meet its residents' public needs including social insurance and public safety. Chapter 4 International comparison of local government and local fiscal system This chapter selects six countries including U.S.A., Germany, Indian, Japan, France and British as study objects, analyses and compares the features of settings of...