The Township Fiscal Health, Since The Tax System Reform

According the allocation principle of financing according the actual level of government,there are five levels of finances in China altogether. Of which the county and towns finances stands at the lowest level of the financial system, serving for the grass-roots farmers of the country. Therefore, its scale, the quality and the level of the service it provides are directly essential for the sound implementation of the public functions of the country's finances.At present,most of town finance conduct unefficiently,they exist some serious problem,in terms of system and operation attached to the model of single case.This paper will choose a familiar town to be a model,in order to study the financial operation from implementing new tax policy .The author wants to overcome the difficulty of town's financal operation,by the means of grasping some real materials on the basis of policy and operation .Which will supply some advice to keep developing and stability.It is more realistic to study single case by way of microscope,which can reveal some found problems .But it is very diffcult to identify and analyse information.Although the auther makes some efforts,it still have some shortage. Having set an individual case of a familiar town or village as the studying model ,we begin to carry out a careful study into the overall financial operations since the implementation of tax distribution system.Based on the first-hand information we got and analyzed the problems with policies and practices, we can figure out what actually caused the hard situation of finances on the county and town level. In addition, we can provide some helpful advice of policy on how to stabilize the administration on the ground-root level, which will be far more significant, especially academically, than the study done from a macro-point of view. The whole article altogether is divided into four parts. The first part is an brief introduction of the basics facts about Hongshandian town of Shuangfeng County as well as a review about the financial operations before the implementation of tax distribution system in 1994. The second part maily focuses on the overall financial operations in Hongshandian town of Shuangfeng County after the launching of the tax distribution system. It begins with the observation on the overall financial operations in this place according its revenues and expengditures from 1994 to 2001, then ,the analysis on those facts from 2002 to 2003.. The third part highlights the exsitting problems in the financial operations in this place.At the same time, this part figures out the main real causes of all those problems, namely the lack of tax that leads to the slow growth of fiscal revenue; the over-growth in staff payroll that results in more regular payments to them, and finally, a unreasonable financial system which caused a outdated financial management. Having the analysis on the various problems concerning financial operations in Hongshandian town as the basis, the fourth part finally provides some advice and suggestions on how to address those problems from a both economics and politics point of views.