Financial Research Of Backward Counties And Townships

Financial difficulties in some counties and townships have been a prominent problem in the financial and economic operations due to the uneven economic development, great increase of the mandatory spending on the livelihood policies, excessive growth of the financial supported staff, and the imperfections of the financial system and so on. Since the reform of the tax system in 1994, our country gathers the financial resources appropriately, which has provided a powerful guarantee for the implementation of macro-control, and the central and provincial financial institutions improve gradually. However, there remain many problems from the perspective of the actual functioning of the county and township financial management system. With the implementation of the reform policies in the rural areas.the abolition of "three advocate and five reunification" and the agricultural tax, agricultural specialties tax and additional tax, there is a great reduction in county and township finance, and all kinds of questions continue to appear, the most prominent of which is the unbalance of payments. Therefore, relieving the financial difficulties in some counties and townships in our country has become major issues of common concern.Our country and Shandong Province have put forward a number of incentive and protective "Award and Subsides" policies to alleviate the current difficult situation in the county and township effectively. With the development of the economy, the county and township financial revenues in Shandong Province have been expanding and the overall financial strength of the county and the township continues to increase. However, the financial difficulties of counties and townships have not been fundamentally reversed. Many factors have resulted in the revenue reduction and expenditure increase in grass-roots finance, which exacerbates the financial difficulties in large underdeveloped countries and large agricultural counties. Because of the level and position features in the county and township finance, it is significant to study how to solve the financial difficulties, improve the financial system, and enhance the financial management.The research methodology adopted in the thesis is theory exploration, empirical analysis and deduction and induction. Starting from the analysis of public goods theory and its level, the grass-roots Government's powers and the scope of financial expenditure are defined. A comprehensive elaboration is conducted using institutional economics and financial theory.The innovation of this thesis is: taking Heze city as a case to conduct this investigation, combining the general and the specific, and focusing on the research of the specific. The past studies about County and township financial problems all focused on such high levels as national or province-wide level, and researches specifying to a county in an area are very rare. If the most difficult financial problems of the grass-roots county are resolved, the financial difficulties of counties and townships are easy to be overcome. Theoretically, if problems in the underdeveloped areas are solved, problems of the developed areas can be tackled more easily. This also plays an important role in promoting the economic development in the eastern region.The success of this paper will be used for reference to the economic development of Heze city, the enhancement of the financial strength, and the deepening of the reform in the management system. Besides, it also has a great practical application value. This is the unique innovation of this article.This thesis, based on the financial difficulties in Heze City, elaborates how to release the financial difficulties of counties and townships. The research falls into four parts. The first part elaborates the current difficult financial and economic situation of counties and townships. The second part demonstrates the main reasons for the financial difficulties in counties and townships. This article holds that the top-down administrative system makes it in a disadvantageous position for the county and township government to arrange their revenue and expenditure. And the variability and transition during the transferring period results in the difficulties for the county and township government to have a scientific arrangement for the expected revenue and expenditure. Financial difficulties of the county and township are caused by many aspects, both by historical and practical reasons. The third part analyses the financial difficulty situation through a case study of Juancheng County in Heze City. The fourth part highlights the measures and recommendations to the financial difficulties of counties and townships. From the public goods theory and the level of it, this chapter puts forward the reasonable definition of county and township financial powers and the range of the expenditure so that the financial power and the authority of the county and township government are symmetric, realizing that the county and township government can do the things deserved so much money. Concretely, we adopt the following measures: First, strengthen the financial management, improve the financial regulation and control capacity; second, change the way and highlight the ones to support, and promote the development of the regional economy; third, crack the difficulty in corporate finance and promote regional economic development; forth, standardize the transferring payment system, promote the equalization of basic public services; fifth, perfect the financial institutions, divide the financial power and the authority reasonably.