Rural Financial System In China Studies

Township finance is the most basic level in our current financial system. It is the cornerstone of the state finance. It is the economic base of township government to fulfill the social and political functions. Years, it is very important of township finance to manage the basic finance, organize the local taxes. Now, with the deepening of tax-sharing system reform in 1994, financial framework has already been formed. But, it largely retained the local government interests with great transitional nature. The result is that the central government revenue in the national proportion of total fiscal revenue is 28.35% before the tax-sharing system reform, and it up to 52.4% in 2009. Meanwhile, provincial and municipal governments have concentrated financial resources. Only county and township government revenue is falling. According to statistics, county and township government provide for nearly 3000 people which take up 70% of entire country. But county and township financial revenue take up 17% of the national revenue. It is necessary to concentrate financial resources, but if the degree of concentration is too large and the speed is too fast, inevitably have a negative impact on the county and township finance which make a serious shortage of funds.This paper is from the start of basic theory of China's financial system, learning from Germany, the United States, Japan and other financial management experience, analyse the content and features in their financial system of the basic financial protection. At the same time, select the township financial management system of shanghai pudong new area, learn from the experience of Pudong, Finally, on the basis of the above analysis, put forward step by step proposal to solve the financial difficulties of township.