| After twenty years of transformation reform about economic growth and economic regulation mode, China has gone into an era of deep social change. Beyond doubt, the reform has brought benefit to people's wealth, but it has also given rise to some problems, in which the problem of "san nong"(agriculture, peasant and countryside) and subsequent fiscal dilemma in grass-roots areas are outstanding.What's the extent of fiscal dilemma in grass-roots areas? What has caused fiscal dilemma? How to control fiscal dilemma in these areas? Some scholars have made some researches and expressed their views. But for those poor areas, their fiscal dilemmas have their own peculiarities, and there are also no effective solutions for these problems at the time being. So, that's the reason I select the topic.The paper is divided into four parts. In the first part of the paper, I make a review of fiscal reality in poor areas. The main point is to put forward the notion of "poor area" and to analyze their fiscal realities.The second part of the paper is a practical study about fiscal dilemma in poor areas. For my analysis, I select "Tongjiang County, Sichuan" as my sample, through the study, I found that its fiscal dilemma having lain in expenditure problem, heavy debt and high interest rate etc. Because of fiscal dilemma, grass-roots cadres are absorbed in "increasing incomes" and subsequently other jobs are neglected, so governmental functions are weakening in the area; Because of fiscal dilemma, the salaries of grass-roots cadres can't be paid in time, which makes the cadres lack of activity in their work; Because of fiscal dilemma, the supply of public goods and public construction are limited to a small level, and the development of economics is affected. As a whole, fiscal dilemmas in poor areas have been obstacles totheir local economic development. If these problems are left unsolved, they will eventually affect the practice of "West Exploitation" and other policies. To seek the reasons what caused the fiscal dilemma in poor areas is the main topic of the third chapter. Firstly, due to social,historical and other factors, the rate of economic development in poor areas is slow, so, their fiscal incomes are small; Secondly, the "gap" between different areas is increased with economic development, which causes the capital, workforces of poor areas to flow outside and worsen their fiscal incomes; Thirdly, current tax system typical of "separation of taxes" causes the control over "wealth" to turn over to higher authorities, and the control over "business" to land over to lower authorities. Grass-roots fiscal departments lie in the lowest lever in the fiscal budget; so, its fiscal situation is the worst in all kinds of governments. The current administrative system is also one of the reasons what caused the fiscal dilemma. The personnel department and the minister of finance are exactly separated, and the fiscal pressure can't be reduced. Some other factors, such as, lacking effective supervise system, blindly pursuing the "image project" for the political achievement, blindly construct and so on. All of them caused the fiscal dilemma in the areas. In the fourth part of the paper, I make some suggestions about how to relieve fiscal dilemmas in poor areas. Firstly, also most importantly, poor areas must eradicate "poverty" in order to improve their fiscal situations; the governments in these areas must escalate their industrial structure by "agricultural industrialization". In the process, to handle the relationship between government and market is also crucial. Secondly, to form public finance system is also important, we must correctly divided the authority between central government and local government according to the rule of "equality between control over wealth and control over business", rural compulsory education, basic health care, rural basic construction andother public goods should be provided by central government, surely, the upper financial departments ought to give some subsidi... |
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