The Principle Of Rural Fiscal Expenditure And Design Of Index System Of Performance Appraisal In China

The fiscal difficulties of rural areas are the remarkable phenomenon of the extraordinarily difficult problem facing agriculture-rural areas-farmers in China. Research on fiscal problems will have great value and significance in theory and practice. There are many reasons for these questions, and the accumulation for a long time is one of them. Based on fully using the research of China and other countries for reference, we are attempting to put forward a proposal on devoting much attention to the efficiency and impartiality according to the China's fundamental conditions, the question is also considered from the development of the harmonious urban and rural.The conclusion and innovation of this paper are as follows:1. It is held that efficiency and impartiality have the same importance according to the China's fundamental conditions of villages, the fiscal functions and powers of village authorities in rural China is to provide expansion public goods and services as well as special public goods and services which are beneficial to towns and villages based on the consideration of harmonious development of urban and rural. The rural public goods and service can be divided into two kinds, general public goods and services and special public goods and services according to the general character of market economy and the individual character of different countries' reality. The rural general public goods and services may be further classified into the basic public goods and services and the expansive public goods and services according to whether it involves personal most basic right to live or to develop.2. This paper argues that the allocation of rural fiscal expenditure duty should observe principles of benefit, fairness and equilibrium by considering the facts in rural China and using the experience of other countries'allocation of rural fiscal expenditure duty for reference. The main expenditure duty of rural basic public goods and services should be supplied by central finance and provincial finance. The paper suggests how to divide fiscal expenditure duty between county and township levels, as well as township and village levels in rural China. The rural expansion public goods and services can be divided into administration mode, production mode and life mode according to its contents. There is a definite divide in public goods and services of administration mode at county and township levels, which can be classified into three kinds of mode, tax sharing system mode, revenue and expenditure contracting-mode, unitary revenue and expenditure mode. It is not a compulsory provision for supplying the production mode and life mode public goods at township and small town levels authorities, these public goods and services can be selectively supply in the light of the economic strength and actual demand by each township and small town in rural China. It is not necessary to stipulate that expenditure duty of public goods and services should be undertaken by village's authorities for the allocation between townships and villages. Expenditure duty of public goods and services should be undertaken voluntarily by village authorities according to village's financial resources and villagers' wishes.3. The scale and structure of fiscal expenditure at township and village levels in rural China have been analyzed deeply by utilizing the data from local finance statistics materials since 2000 and combining with the first hand materials obtained from social investigation by the writer. Some questions are discovered. The scale of fiscal expenditure at township and small town levels is too small to satisfy the basic public needs, and there is a relatively reducing trend, the township and small town's finance tend to periphery. There exits an unbalance phenomena of fiscal expenditure at township and village levels of different areas in rural China, a great disparity in per capita fiscal expenditure. The fiscal expenditure is mostly used in administration aspects but not in projects of proving social developmnet. Principles for optimizing the scale and structure of fiscal expenditure at township and village levels are proposed, which including of adhering to the functions and powers of government finance, meeting the public demands, laying stress on developmental expenditure and keeping a balanced expenditure between different regions.4. According to the basic principle of expenditure performance appraisal, and linking with the actual situations in rural China, the performance appraisal index system is designed preliminarily for the rural fiscal expenditure in China, it is composed of three kinds of index, economic index, efficiency index and validity index, each kind of index includes several secondary index. As a case, preliminary performance appraisal on administration expenditure of the XW-township is carried out by using the obtained data from the social investigation.5. Some suggestions of policy consideration are put forward, which including the rural basic public goods and services should be offered by central and provincial level finance by considering different programs, region and several steps, the scale and structure of fiscal expenditure in rural China should be adjusted and optimized, the fiscal expenditure disequilibrium among different regions in rural China should be lessened through strengthening financial transfer payment, the performance appraisal index system of fiscal expenditure at township and small town levels in rural China should be established and improved step by step.