The Reseach Of Villages And Towns Finacial Debt Problem In The Period Of Making The Transition Of Economy

Being the primary part of our finance organization, the villages and town finance is at the first grass-roots level but has made tremendous achievements since 1983. It appears more and more important and has played a great role on strengthening the basic people's power, promoting the development of the countryside's economy and perfecting the basic finance system as well. But in the meantime, there appeared some serious problems caused by the backward innovation and the imperfection of the existing system. In particular, the increasing financial deficit and debt have hindered the normal operation of local government, hence affected its economic development and the close tie between Party members and the masses; therefore they have threatened the stable and quiet social environment and become one of the hot topics. If they could not be solved in time, they would lead to the crisis of finance, government credit and grass-roots political power.Based on the public financial theory,the characteristics and practice of the villages and towns finance, the paper gives a new explanation on its debt. Following the general train of raising, analyzing and solving problem, it probes the harm, cause and solution of the problem. Then the conclusion that it is a common phenomenon in China at present has been drawn. Therefore it could be solved by looking into its root cause and symptoms, taking drastic measures by proper steps and phases.