Study On County Financial Difficulties And Supply Of Public Goods In Rural Areas

Financial difficulties of counties and townships in China emerged in the process with the economic and social development, since the 1994 tax sharing reform, county financial difficulties presenting a generalization of new features , as in recent years it has become the key research areas to experts and scholars as well as government decision-making departments. Currently, county and township level government have very sharp contradiction between revenue and expenditure, the fiscal problems that seriously affected some parts of the social stability and government authority. The significance of county financial predicament is not limited to the area of finance, but also involve the supply of public goods in rural areas.At present, China's serious shortage of rural public goods provision, supply of public goods in rural areas can not meet the farmers production, life and the actual needs of rural development. Supply of public goods in rural areas seriously out of line with demand, which greatly hindered the development of rural economy and society, has restricted the agricultural, rural development and farmers to reduce the burden of the "bottleneck." To address the shortage of rural public goods, to achieve effective supply of public goods in rural areas, this paper describes the basic theory of public goods in rural areas on the basis of Tai'an City, by the shortage of rural public goods status of research, analysis of the formation of rural public goods in short supply the underlying causes, and seek to resolve the shortage of rural public goods measures designed to achieve the rural public goods supply and demand balance, thereby reducing the burden of farmers, promoting agricultural development, promote rural economic prosperity.The paper first analyse the status of county financial difficulties of Tai'an City, and analyzed the supply and demand of public goods in rural areas in Tai'an City. The paper calculated the NingYang County and DongPingXian education investment, medical facilities in spending and investment of rural infrastructure gap, analyzed the countryside public products in the supply structure, quantity and efficiency in the contradiction. Use the 2005 to 2009 panel data of rural education, health care and infrastructure investment in the modeling analysis the impact on the local revenues. The model shows that with the existing level, if the fiscal revenue increased by 1 million, there will be 1,700 yuan for investment in rural education, with 660 yuan for rural health care investment, and 1,300 yuan for rural infrastructure Building. Finally the paper proposed recommendations for the financial situation of Tai'an City, the supply of public goods in rural areas.