The Supply Of Public Goods In Rural Areas In The View Of Financial Repression

Today, China is stilly an agricultural country, rural economic and social development impact on other aspects, while the supply of public goods in rural areas has seriously constrained the rural economic and social development. The Fifth Plenary Session of the sixteenth Central Committee of the Communist Party of China decided to build a new rural society, and The Third Plenary Session of the seventeenth Central Committee of the Communist Party of China decided to give peasant contractual right of land which can be carried out according to law and on a voluntary. So in this study, we discuss the supply of rural public goods in view of financial repression. Public goods in rural areas are still non-rival and non-exclude. It should be provided primarily by government agencies, but the government focus on GDP growth, and public financial pay more attention to cities, resulted in China's rural areas lack of public goods.In case of the fiscal investment is shortage of rural public goods supply, the government should lead to financial support for the supply of public goods in rural areas, but due to financial repression make the formal financial sectors limit loan for peasant. To improve financial support for public goods in rural areas, we must correctly handle the relationship between the government and the market, and put financial deepening into practice.In conclusion, due to public goods in rural areas are still non-rival and non-exclude, the government should be supply of public goods in rural areas primarily, but the abilities of local government is limited, should lead to finance support for the supply of public goods in rural areas, not financial repression.