Probe On Causes And Countermeasures Of Hunan Township Government's Debts

As the most basic level of the government of China, the township government undertakes the leading responsibility in providing public products for the country and leading the farmers to be on the way of being well-off and maintaining the social stability in rural areas. Because of the present socialist-based market economic system in China, the necessary financial security must be given to the township government in order to keep it working well. However, since the end of last century, the financial status in most township governments has been worsening and has evolved into a heavy debt burden, which not only has brought great impact on the township government's working well and caused the supply shortage of public products in rural areas but also done damage to the image of the Party and weakened the township government's authority and social mobilization. Therefore, the debts in township government must be solved properly, which has direct relation to the agricultural development, the farmers'increased income, the stability in rural areas and even to the country's overall development, and so enough attention must be paid to it.With reference to the careful survey of the rural debts in Hunan Province, the paper shows that the debt ratio in rural areas is great, its proportion claims are very low and are of poor quality, the debts result from various situations and are accumulated historically. Therefore, theoretically and practically, this paper makes a deep discussion about the reasons for it as follows:1)the frequent natural disasters and the worsening environment;2) the unbalanced development strategy on government-led cities and rural areas;3) the weak development potential of the rural economy itself;4) the hard maintenance of creditors' rights stemming from the imperfect law system, the unscientific management system and the imperfect policies, and China's dual social structure and social causes.Based on the above, this paper puts forward such instructive suggestions as simplifying the structure, downsizing the grass-root organizations, further refining the township government's division of powers, lightening its financial burden, transforming its functions, reducing the expenses, changing ideas, setting up the urban-rural integrated supply system of public goods to alleviate and discharge the debt burden.