Eliminate The Financial Deficit Of The Township Level, Push On The Tax-fee Reform In The Rural Area

The Tax-fee reform in rural area is just like a double-bladed sword: one is to reduce the tax burden on peasants, the other is to make fiscal revenue of township level. This article analyzes the factors that lead to the financial deficit from the aspects of politics and social. This article is made of three parts as followed:In the first part, the author lists the forms that the township level can't keep the budget balance.In the second part, the author analyzes the disadvantages of fiscal system, which induce fiscal straits in the township level. The disadvantages lie in three aspects: firstly, with a small part of revenue is allocated to the lower government, the grass-root level in rural area suffers fiscal straits; secondly, the arrangement of government responsibility prefers to the lower. The reform in 1994 paid more attention on the revenue allocation other than a reasonable responsibility assignment. To self-interest, the upper government takes advantage to unload some responsibilities to the lower government without any fund flowing to the lower accordingly, which results in fiscal straits in the grass-root level in rural area; thirdly, government transfer system is not perfect and the lower can't gain sufficient revenue through this system. In this part, the author also analyzes the perfect of two-dimensional economic structure of cities and countryside.In the third part, the author gives some advices on how to resolve the problems mentioned above to alleviate fiscal straits in the township level and help to propel the tax-fee reform in rural area. Firstly, is to set up body taxes for township level to ensure budget balance. The central government and the country government should be in the same level in the fiscal system. Secondly, is to set up a lawful regulation on obligation assignment between different levels of government. Thirdly, is to break two-dimensional structure, to speed up the farming industrialization progress and the development of citi-lization in rural area, to realize coordinating development of cities and countryside.