The Research Of Fiscal Sharing Mechanism And Optimization Of Urban And Rural Subsistences Allowances In Jiangxi Province

The development of the subsistence allowance for both urban and rural residents is not only an important way to secure basic living of poor people, but also a specific reflection of Scientific Outlook on Development, as well as a necessary requirement of realizing social harmonious development and well-off society. Since 1997 and 2006, Jiangxi respectively started to popularize the subsistence allowance for urban and rural residents. Although it started late, it has been launched for many years and has realized province-wide living allowance. However, the problem of the fund-raising of the subsistence allowance for both urban and rural residents is not solved properly. There are not multiple ways to raise funds. Different levels of financial mechanisms do not have a scientific and reasonable system. Due to different developments in different area, the collection of funds from financial departments at all levels, in accordance with a unified proportion, would easily cause the low efficiency of the funds usage, which would influence the promotion of the subsistence allowance for both urban and rural residents and further affect the development of economic and livelihood projects in local.In the report, the author have used the methodology of positivism and theory analysis to demonstrate the research project. It has analysed the minimum subsistence guarantee system in Jiang Xi Province by using the theory of public goods, Public Finance Theory, and the angle of equal and efficient perspectives. In addition, the article has also analysed the situation of current subsistence guarantee system and status of current finance and regulation system through the main situation of Jiang Xi ’ s subsistence guarantee system. By using those data which I have mentioned above, results and issues will come out as followings in the article: the characteristic of Jiang Xi’s subsistence guarantee system; mechanism of finance distribute in dealing with Jiang Xi’s subsistence guarantee system. The article has also collected the data on expenses of city and suburb’s subsistence guarantee and finances by using the endogenous economic growth model. According to this data, it will analyze the best expenditure of scale under the current situation of sharing mechanism. It will lastly give some recommendations.By using empirical analysis, it has been more usual that the actual expenditures deviated from optimized scale on impoverished districts. Similarly, the gap is greater. Based on subsistence guarantee system analysis, relatively there is negative correlation between economic development levels and low expenditure on subsistence guarantee; expenditure on low subsistence guarantee has been exceed from optimized scale on impoverished districts which enables the governments under great strain. However, expenditure of low subsistence guarantee on developed areas is lower than optimized scale, and the trend of gap enlarges, possibly due to emphasizing the economic projects inappropriately in steads of needs of low-income people.The finance sharing mechanism of subsistence guarantee expenditure should be optimized by using experienced history and revolution. Finally, the government should take responsibility to change those four parts below: Establish an sustainable finance raising mechanism; Optimize the system of financing distribution; Reform the current finance distribute mechanism; Enhance the regulation and surveillance system.