Research On Perfecting The Rural Public Finance Mechanism Of Our State

The 6^th Plenary Session of the Sixteenth Central Committee of the Communist Party of China initiated the goal of perfecting the public finance mechanism and gradually realizing the equality of the basic public service, which is of significant meaning for constructing a new socialist rural area and a socialist harmonious society. The public finance mechanism of our country has been initially established, but it is not perfect, the most important problem is that the public service network can not fully cover the vast rural areas, resulting a big difference between the urban areas and rural areas, so there is a long way to go before reaching the goal of equality initialed by the central government. This thesis talks about the public finance condition of the rural areas of our country, in which the concept of "non-equal public product supply" will be raised, pointing out that the public product supply of the rural areas of our country is of very shortage whether in terms of total amount or specific items. The thesis analyzes that the reasons resulting in the shortage of the above are: different development model of urban areas and rural areas, non-unification of decision right and money allocation right and non-equality trend in the process of fiscal fund appropriation.In order to perfect the public finance mechanism and gradually realize the goal of equality of basic public service, three resolutions are raised in this thesis. The first issue is to reform the fiscal administration system of counties and towns. Perfecting the public finance mechanism and reforming the fiscal administration system is "an issue can not be avoided". This thesis tend to amend the five-level fiscal system to three-level system of "central-province-county", and in accordance with the principle of "government at a level, decision making right at a level and money allocation right at a level", to adjust the decision making right and money allocation right of governments at various levels to coordinate the two kind of rights. In order to unify the decision making right and money allocation right fundamentally, the best method is to implement an absolute tax division system which will make various levels of governments shall have their big amount and stable tax resources meeting the needs of their decision and this method will rectify the historical act of "money allocation right control and decision making right release". The portion of shared tax will provide more benefits for the needs of fiscal bureaus of counties. The second issue is to perfect the fiscal fund appropriation system. Perfecting this system needs to concentrate on the realizing of equality of public service, which should aim at the social public demand field, and mainly tend to the rural areas or under-developed areas. Therefore, it is necessary to adjust the structure of the appropriation payment to have the ordinary appropriation payment to be the principal form of fiscal fund appropriation payment and eliminate the special appropriation payment to gradually cancel the tax refund to ultimately increase the percentage of equality of appropriation payment. Second, it is necessary to reform the fund allocation principle in appropriation payment to strive to allocate fund according to the fiscal revenue and actual demand of different areas and eliminate the unreasonable rule of "taking the amount of tax paid and supporting fund as a criteria". The third issue is to develop rural economy and strengthen the rural corporation economic group, increase the income of farmers so as to enhance the supply capability of rural public product to develop the social security program in rural areas.