The Financial Base Of County's Governance And Its Transformation In China

Counties governed, world settled. The substantial financial base is badly needed for good country's governance. It is the foundation of county's governance; at the same time, it is the critical and urgent factor to governance, which has a far-reaching influence on governance, especially for an agricultural county. Based on the case study of a municipal and agricultural district, this thesis separates financial base into four parts:institutional base, administrative base, income base and distributive base. In addition, the author observes the change of its financial base in this country by dividing the whole time into three periods:1949 to 1979,1980 to 1998, and 1999 to 2009. According to the investigation, firstly, the author discusses how the changes of financial base affect a county's governance; and then make some suggestions on how to improve the financial base for a county's governance.This study puts forward the idea that there are four aspects effects which A's financial base influence on its county's governance. Firstly, no matter before or after the reform of tax distribution system, A's government has no any autonomy which leads to the scale of financial revenue fluctuate accompany with the adjustment of system. Secondly, the grains and losses brought by the reform influence the basis and vitality of county's governance to a certain degree. Thirdly, after the reform of tax distribution system, financial fund which needed to the A's governance severely relies on subsidies of superior authority, that is to say, A's self-efficiency has dropped to the lowest level and it partially depends on extra-budgetary revenue. Fourth, it is unbalance between affair tasks and financial power in A. For the present, the way to make up the shortage of funding is only through striving for the superior authority's transfer payments.Based on the analysis of relationship between A's governance and local fiscal revenue, this study provides some suggestions to solve the problems in the financial base during the governance, as well as how to complete and strengthen A's financial base of in future. First is perfect sub-provincial's financial system. Through the adjustment and perfection of financial system and keeping the local government's financial power is equivalent to its affair right, those agricultural districts and counties can be provided a stable system guarantee. Second is higher local's income of ordinary budgetary. Increase the amount of general transfer payments. Decrease the amount of special transfer payments. Weaken the influence of extra-budgetary revenue until its cancellation. Clear the affair rights of government of all levels, based on which can determine the financial power and financial resources of local government. When there is shortage in affair rights and financial resources, it would be made up by the transfer payments (usually it is general transfer payments) of higher authorities. Explore and promote agriculture-related taxation system reform, levy agriculture-related new taxes and gradually build a stable financial resource of agricultural counties. Third suggestion is to promote administrative institution reform, to optimize local government's institution setting and to reduce administrative costs. On the premise of normal operation and salary, livelihood should be promised at large and narrow the inequality of essential public services and manage the local's finance appropriately. At the end, to build special subsidies system and a system of differentiated performance assessment.