Research Of Advancing The Equality Of Public Financial Supply Between Urban And Rural Areas

Improving the public finance system has been proposed in the policy “Decisionsby the Central Committee of the CPC on Some Major Issues in Building aHarmonious Socialist Society” at the communique of the Sixth Plenum of the16thCPC Central Committee (2006), the goal of equalization of basic public services hasbeen achieved gradually. The Seventeenth National Party Congress(2007) proposedthe principle of promoting sound, rapid national economic development, deepeningfiscal, taxation and financial restructuring and improving macroeconomic regulation.We will improve the public finance system as we work to ensure equal access to basicpublic services and establish development priority zones. These are of greatsignificance in the building of a new socialist countryside and the socialistharmonious society. The public service system of our country has been primarilyestablished, but still need improvement. The major problem is that public servicedidn’t cover all rural area; great disparity exists between urban and rural areas.Therefore, the study on promoting the equalization of urban and rural public financesupply has practical significance.The first chapter elaborated the connotation of public finance theory, secondlysummarized at home and abroad on the issue of the public finance theory to explain.The second chapter gives an account of the status quo of public fiscal supply inurban and rural areas and gives a detailed description of the inequlity of public fiscalsuppy in urban and rural areas regarding basic education, medical care and health andsocial insurance.This shows that there are some defects concerning the financesystem.According to the analysis of current condition in the third chapter, four reasons emerge from the research concerning the inequality of public fiscal supply in urbanand rural areas. They are the influence of dual economic structure in urban and ruralareas, the impact of tax-share fiscal system reform on the quantity and quality of thepublic service supply in rural area, the deficiency of pubic fiscal supply in rural areascaused by County-township fiscal dilemma and the lacking of institutionalguarantee and regulation on fiscal operation.In order to improve the public fiscal system of our country, this paper drawlessons from other countries’ experience on pubic fiscal spending and getsenlightenment in the following aspects in the fourth chapter: the first is a national lawmust be legislated to regulate the supportive policy to rural areas made by publicfinance; the second is that we must build a healthy rural social security system withthe aid of public finance.The fifth chapter combining our practical conditions with overseas experience,this paper tackles the problem by proposing the following strategies. First, breakingthe dual economic structure in urban and rural areas; second, improving tax-sharefiscal system suitable to achieve equality of basic public services. Following areprocedures we need to take: first, ensure reasonable compartmentalize of duties andresponsibilities of governments of different levels. Second, ensure governments ofdifferent levels having financial powers corresponding their duties and responsibilities.Third, improve county-township fiscal dilemma to ensure rural public service supply.Forth, form sustainable rural public service fiscal supportive mechanism, achievingequality of public service in urban and rural areas.