The Fiscal Foundation Of Management Of County And Its Change

"To gather the person of world can't have no finance; To manage the finance of world, cant have no righteousness." How to gather and manage finance is not only difficult and important in managing a country, but also in managing a county.This dissertation has inquired the basis of finance and its change of a county through deep explore of the basic of the county-lever finance in Hubei province, and put forward theoretical explain to the conversion of the fiscal basis of a county. At the same time, the author has analyzed the predicament which the county-lever finance faces from the dividing tax reform, and put forward corresponding suggestions to strengthen the fiscal basis of a county.Fiscal revenue can be divided into budget income and income out of budget according to the fiscal management of government. The total scale of the fiscal revenue reflects whether the fiscal basis of a county is strong or weak. The changes of structure of fiscal revenue and the changes between budget income and income out of budget reflect the fiscal relation between governments and the changes of power relation.The main source of finance in the budget income includes the agricultural taxes, various industrial and commercial taxes and transfer payment. The agricultural tax is the most ancient tax of our country. In the traditional society, the agricultural tax always is the fiscal foundation of our country, and it is a main link by which the country and the farmer relate. At the beginning of the foundation of the nation, our country implements the policy of "agriculture raises industry", and the country derives the resources of the countryside to support industry and the construction of the whole nation, so the proportion of the agricultural tax is quite high. Because china implements the strategy of giving priority to the development of the heavy industry, the industry develops much fast, various industrial and commercial taxes becomes the important origin of the county-level finance after the foundation of the nation. After the reform, along with the fast development of the industry and commerce in the countryside, the revenue of the industrial and commercial taxes becomes the main body of the finance, and the agricultural tax begins to attenuate. After the implementation of the tax distribution system, because the central takes back the main sources of the taxes and gives the agricultural tax to the place, the status of the agricultural tax rises, in addition, in order to obtain the more place income, the county gathers various kinds of "expenses" to the farmer to increase the source of wealth in order to make up the insufficiency of the financial revenue of the county. The aspect of "agriculture raises politics" displays obviously in basic unit government of the county-town class. With the tax and expense reform carrying on in the countryside, the expense is cancelled, and the status of the agricultural tax also changes. In 2006, the agricultural tax is cancelled in the whole nation; the end of the agricultural tax also means "agriculture sets up the nation "comes to the end.Transfer payments are the main income of fiscal revenue of a country. In the plan economy mechanism and overall rationing system period, the subsidy of the higher authorities is comparatively important incomes for the county-lever governments. After tax division system has went into operation, the orientations of tax were turned in to the superior authorities, which made the incomes of county-lever revenues decrease sharply. To remedy the finance gap, make the local political power stable and support local economy development, the central government increased the transfer payments, and then the transfer payments become the majority of county fiscal revenues. Moreover, the county revenues relied more on the transfer payments since tax and fee management reform in rural areas was put into practice, especially the cancellation of agricultural tax. The intensification of transfer payments, on one hand, is the direct embodiment of the policy of "industry raises agriculture"; on the other hand, it reflects the centralization and intensification of finance power, and the central government reinforces the control of local finance, thus, the county finance comes more nationalize.Nevertheless, transfer payments could not fill the gap of county finance by the cancellation of agriculture tax, and what's more, transfer payments are lack of institutionalization for it has always been a bargaining interest negotiation mechanism. The central government kept adjusting tax distribution, and all major county taxes became sharing taxes under such circumstances; the provincial finance also participated in the interest distribution, and the county finance is lack of some stable major taxes of its own. All these factors led to the instability of county finance and the weakening of its autonomy.The issues of keeping the county operation of its own and supplying with the country public services, which are crucial for the county governing, need to find solutions immediately after the cancellation of agriculture tax. Finally this dissertation has discussed briefly about the countermeasures to solve the county finance dilemma, which are institutionalizing transfer payments and stabilizing county major taxes. Stabilizing the basis of county finance would be helpful to stabilize the basis of state power to some extent.