Study On The Fiscal Management System Of Chinese Township

Among Chinese five fiscal levels, township is the most basic one. Since the determination of the fiscal position of township in1985, township finance construction has achieved great results, especially for its great significance in new rural construction and rural-urban integration reform. The township fiscal management is an important task of modern township management, which concerns the orderly operation of township and the actual interest of ordinary citizens. Through the study on the changes in township fiscal management system, this paper takes the fiscal management system of TL Town of Suzhou City as an example and points out that there are some common issues in the current township finance, such as the excessive dependence on land and finance, the continues expansion of organizations, the support for overmuch fiscal personnel, the lack of sufficient fiscal guarantee when providing public financial services, and the unclear positioning of township’s fiscal functions. Moreover, the paper analyzes the institutional causes of those issues, including the imbalance between township financial authority and powers, the irrationality of fiscal and tax system structure, uncoordinated operations of fiscal and tax institutions and the imperfect budgetary system, all restricting the smooth work progress in township. On this basis, this paper proposes some specific suggestions and solutions for issues in the finance of TL:to deepen the reform of local finance and tax system and improve the structure of tax system; to further clarify two levels of government powers and seek the best combination of financial resources and powers; to strengthen the budget reform and promote and standardize the management of township budget; to reinforce financial supervision and management and advance the reform of the fine and scientific financial management; to comprehensively standardize the township debt management; to formulate plans for financial resource construction and promote the steady growth of township fiscal revenue; and to further transfer township finance functions. It is hoped that, through the solution made for perfecting the fiscal management system of TL Town, this paper could provide some reference and guidance for the health operation of township fiscal management system and township finance in China.