A Research On Institution Construction Of Overcoming Hunan Province County-township Fiscal Dilemma

There are many reasons leading to County-township fiscal dilemma in our country. Basically, it is the defects of institution. So, the main idea to overcome County-township fiscal dilemma is the institutional innovation. As a large agricultural province, Hunan's County-township fiscal operation situation is not optimistic. In the local fiscal operations system, the problem so called Sannong( that's agricultural, countryside and peasants), County-township fiscal dilemma and institutional issues are intertwined. Facing problems in County-township fiscal dilemma, we must solve it by focusing on the whole fiscal institution under the provincial level and governmental institutions.This paper firstly introduces some theories of the local fiscal institution. The theory of public goods demonstrates the local public goods'existence, the effective provision of local public goods, and the optimal size of local public goods and explains the necessity of local classified fiscal institution. The western fiscal decentralization theory is the further development of the public goods theory which fully demonstrated the reasons of separation of governments'power, how to separate it and other key issues. Meanwhile, the paper also summed up some principles of dealing with the fiscal relationship between local governments. Secondly, this paper analyzes the performance and characteristics of County-township fiscal dilemma in Hunan province. Then we probe the institutional reasons leading to County-township fiscal dilemma in Hunan through analysis of a large amount of data and information. Through this part, we truly reflect the County-township fiscal dilemma in Hunan Province and paving the way for further analysis and proposals. Thirdly, the paper makes further analysis of the economic effects of the fiscal institution and provides quantitative analysis for institution innovation of overcoming the County-township fiscal dilemma. According to the analysis, tax revenue, fiscal expenditure and transfer payments which depend on fiscal institution have clear impacts in economic growth. This analysis fully proved the validity of this paper's points. The last part of the paper is the Construction and Optimization of the fiscal institution of overcoming the County-township fiscal dilemma. Based on current situation and the characteristics of the County-township fiscal dilemma in Hunan province, this part presents comprehensive approaches of overcoming the County-township fiscal dilemma of Hunan province in following...