The Fiscal System And Fiscal Policy To Meet The Demand For Coordinated Development Between Urban And Rural Areas

According to the principle of the developmentment economics the industrialization process in a country is classified as pre-industrialization, middle-indusrialization and post-indusrialization, the relationship between industry and agriculture experiences the three stages, namely, the industry supported by the agriculture, the self-supply of the industry and agriculture, the agriculture supported by the industry correspondingly. But the stage of the self-supply of the industry and agriculture is only the theoretical summary in essence, it is equivalent to the phase that the producer support estimates equals zero. In process of indusrialization it is quite difficult to find the country or area whose industry neither exploits nor supports its agriculture. Thereofore the middle-indusrialization is the beginning of the agriculture supported by the industry. Since the reform and open-door policy, especially 1990's the national economy has increased continuously and sharply, Great changes have taken place in the social and economic structure. Our country entered the middle-industriallization in 2003. Facing new situation the central economic meeting in 2004 made a new estmation that our country has entered the middle-industrilization and the stage of getting industry to promote agriculture. We should carry out the policy of getting industry to agriculture, adjust the national income distribution structure and support the development of the agriculture, the countryside and the peasant actively. Thus it is very necessary to analyse the macro-reason for restricting coordinated development of the urban and rural areas namely financial system, tax system and the supply system of the public goods and put forward some financial suggestions about coordinated development in the urban and rural relationship learning from the successful experience of the coordinated development in the urban and rural areas.The research into the financial system and financial policy to meet the demand for coordinated development between urban and rural areas is as follows:Firstly, through a series of indexes the gap of social and economic development between the urban and rural areas is weighed accurately. The gap between urban and rural areas from the founding of China on, especially after the economic reform and open-door policy is analysed systematically. It is divided into two stages: the time when dual structure was formed gradually before the economic reform and open-door policy and the time when the gap between urban and rural areas is widened continuously after the economic reform and open-door policy. The latter is the important content described in diagram and data. The goal of the thesis is to describe the dynamic track in which the dual structure in our country is formed and enlarged, to reveal the truth that the gap between urban and rural areas exists and dual economic structure has not been changed yet.Secondly, the financial system reason for the gap between urban and rural areas is analysed deeply, especially the system of tax-divided between all levels of governments has effect on the coordinated development between urban and rural areas to reveal the irrationality of the financial system in our country.Thirdly, the tax reason for the gap between urban and rural areas is analysed deeply. The tax inequality between peasants and urban residents, especially the heavier non-tax burden of peasants after the economic reform are revealed to attain the goal explaining one of the reasons that dual tax and fee system brings out the gap between urban and rural areas.Fourthly, As to the financial expenditure the public goods provison system is another reason for the gap between urban and rural areas. It is the main content of the gap between urban and rural areas. Thus it is seen that the gap in the rual financial revenue and expenditure is an important reason for dual social and economic structure.Fifthly, the thesis sums up the finance and tax experiences promoting the coordinated development between urban and rural areas in the market economic country . Generally speaking they begin to carry out the policy of getting industry to support agriculture when the finance is richer. In view of the finance policy it is their common alternatives to do away with the irrational fee of peasants to alleviate the peasant burden and increase the support to agriculture including rural infrastructure, rural scientific and technological research and spread, social security, direct subsidy to peasants and so on. In this way through the policy of giving the rural area more and taking less from the rural area the situation that the agriculture falls behind the industry is alleviated slowly in the process of industrilization to promote the harmonious development between industry and agriculture.Lastly, the long and effective mechanism including the fiancial system, the tax system, the public goods provision system and the supporting and protecting system to the agriculture promoting the coordinated development between urban and rural areas is built to analyse the financéreason for dual structure in our country and learn from the experience in the market country.