A Fiscal Policy Research On Correcting The Imbalance Of Basic Public Service Between Urban And Rural Areas Of China

With the three decades of reform and opening up, China’s economy has gained a rapid development, and the public demand has entered a booming period, such as public education, health care and so on. However, due to the constraints of the existing financial system, public service delivery system in rural areas, the urban-rural dual structure and other factors, there is serious inequality in the supply of the basic public services between the urban and rural areas. The basic rights to live and develop of the rural residents, especially the impoverished population, can’t get effective guarantee. The shortage of rural basic public services has become a "bottleneck" which hinders the coordinated development of urban and rural areas as well as the construction of the harmonious society.This needs to improve the current backward situation of the rural basic public services, constantly narrowing the gap of basic public services between urban and rural areas. Realizing the equalization of basic public services in urban and rural areas is not only significant institutional arrangements which will make the people share the achievements of reform and development as well as reflect the "people-oriented" policy, but also reality needs which will promote social harmony and stability as well as solve the livelihood problems. Therefore, striving for the equalization of basic public services between urban and rural areas has a very important theoretical and practical significance for the temporary sustainable development of our society.This paper focuses on the research problems from the perspective of the public finance. Through the research on the imbalance situation of relevant basic public services between urban and rural areas, and combined with the analysis of the financial system at this stage in our country, this paper indicates the fiscal factors which lead to the imbalance. On the basis of that, it makes a systematic exposition on the other factors resulting in the imbalance as well as the corresponding correctional measures: The contents of this article are divided into six parts, including:The first part is an introduction which mainly elaborates research background and significance of the article as well as specifies the research methods. Then it makes a review on the related domestic and international literature, on the basis of that, it makes some brief comments. After that, it points out the innovation and the inadequacies of this paper:The second part is the relevant concept definition and theoretical analysis. It firstly defines the concepts related to the basic public services in urban and rural areas. Afterwards it makes some theoretical analysis on the need for equalization of basic public services and points out that the equalization of basic public services should set a standard. Finally it elaborates the focal point and the characteristics in the process of equalization;The third part analyzes the imbalance situation of the basic public services between urban and rural areas. It chiefly compares and analyzes the imbalances in basic education, health care, social security, and infrastructure in urban and rural areas by means of mass data. On the basis of that, this part sums up the principal problems of the imbalance;The fourth part is the reason analysis. Aimed at the imbalance situation, this part mainly analyzes the reasons for the imbalance from the perspective of financial system, and points out that the supply mechanism of rural public services, the alien supply system of public services between urban and rural areas as well as the household registration system which implies differences of social welfare are also important factors which constraint the equalization of basic public services between urban and rural areas;The fifth part is the analysis of the corresponding suggestions on fiscal policy. Based on the financial reasons for the imbalance of the basic public services between urban and rural areas, this part puts forward corresponding correctional policy. Something should be emphasized, such as increasing financial support for basic public services in rural areas, making reasonable definition of the powers of government at all levels so as to elevate the basic governments’ financial ability as well as perfecting the equalization transfer payment system and so on.The sixth part is the analysis of the relevant policy recommendations. This section identifies that the correction of the imbalance not only needs to take fiscal policy, but also needs the support and follow-up of other related measures, so as to realize the real equalization of the basic public services between urban and rural areas:Owing to the limitations of the data availability and personal ability, the paper can’t make a comprehensive analysis on the imbalance situation of the basic public services between urban and rural areas. Aside from that, this paper fails to set a specific and feasible standard, which makes the analysis seem to lack depth, This is where I need to make further research in the future.