Improve The Fiscal Policy Of Equalization Of Basic Public Services

Equalization of basic public services is that government should provide the public with basic and roughly equal public goods and public services which have different standards at different stages. Since the Reform and Opening-Up more than 30 years ago, Chinese economy has been rapid developing and national competencies have been significantly increased. However, the regional imbalance between the economic and social development and serious contradiction from urban-rural dual structure result in not only the shortage of basic public services but the inequality of opportunity. Besides the economic development gap between regions, causes also include the late start of Chinese public services, the fiscal policy tilting in economic development, and the neglect of investing public services or the "weight of this light he." investment. L County, a central mountain region of ChenZhou City in Hunan Province, gradually increases investment in urban and rural public services in recent years in order to ensure and improve people's livelihood needs. Free compulsory education, urban and rural minimum security, basic health care, environmental protection, rural transportation construction and other public products have been effectively supplied. The shortage of economic development, however, limits the investment of public goods and services, which in turn results in a huge gap between basic public services and social needs of people. The gap between demand and supply is much larger than the national average and causes a prominent contradiction. Based on the analysis of L County's current equalization of basic public services and learning from academic research results and international experience, this paper tries to identify gaps and problems, and from the fiscal policy vision to explore ways to develop regional economy in relatively backward areas. Therefore, the paper strives to gain insight about how to deepen the public financial system reformation, clarify the central and local powers and financial authority, further improve the transfer payment system, establish a relatively sound public finance mechanism, and set up urban-rural integration of public services and goods. Ultimate goal is to direct economic and social development into a comprehensive, sustainable and scientific development track, to ensure all citizens to share the achievements of reform and development, and to speed up building a socialist harmonious society.