Study On Improvement Of Fiscal Systems Of County And Town

The tax-sharing system initiated in 1994 preliminarily set up a fiscal system fit for the socialist market economy. In the system, the Central Government and provincial governments had established their own fiscal system, whereas, on the county level the fiscal system falters. Problems like revenue shortage, imbalance between undertakings and takings, had been growing to be systematical obstacles of economic growth and executing governmental functions.This thesis presents an analysis of the county-level fiscal system, and thereby proposes a tentative solution to the existing problems so as to renovate the system. The one-for-all solution of the above problems include the following steps:first, establishing a governmental structure fit for the tax-sharing system to solve the redundancy of different administrative entities and fiscal entities; second, direct supervision of township under county and county under province to set up a three-level fiscal system—central government, provinces, municipalities. As for the imbalance between undertakings and takings, this thesis proposes a legislative act to define the county entities'taxes and undertakings so as to guarantee their fiscal revenue; furthermore, to render equality between China's eastern part and western part concerning fiscal revenue, and public services, more transfer payment shall be made to the county and township entities as well as to the western part.This thesis is divided into five chapters:Chapter 1, Introduction; Chapter 2, Relating Theories of County and Township Entities; Chapter 3, Development and Practice of Fiscal Systems of County and Township Entities; Chapter 4, Reference of Overseas Fiscal System; Chapter 5, Solution to Fiscal Systems of County and Township Entities.The academic values of this thesis lie in:(1) combination of strict theoretical analysis and empirical analysis; (2) via analysis of the existing problems of fiscal systems of county and township entities, proposing a systematical solution to those systems; (3) what existing study did not touch on, i.e, the core reason of the above problems—imbalance of undertakings and takings, inadequacy of transfer payment, absence of necessary tax rights, hence the necessity of a systematical solution.With view to the complexity of the existing problems, execution of the systematical solution requires enagement of Central Government, which can in the short run initiate the reform of direct supervision of county under province and fiscal affairs of township entities under county and gradually apply three-level fiscal system. What can be done now is to legislatively define undertakings and takings of governments of different levels and reform existing transfer payment, so as to set up a scientific and adequate fiscal system for the county and township entities.