A Study On The Financial Self-Sufficiency Of County-level Governments In Gansu Province

County-level finance is the foundation of the stated finances and is directly related to economic and social development.It is the cornerstone for ensuring the stability of grassroots political power,the sustainable development of the country’s fiscal economy,and social harmony and stability.Since the implementation of the tax-sharing reform in 1994,China’s fiscal revenue has continued to grow,but the county-level governnent’s financial self-sufficiency is seriously insufficient.The main reason is that the lower financial level is contrary to more powers.The financial self-sufficiency ability is related to the healthy development of the local economy and has an impact on the supply preferences of public goods.Therefore,the purpose of this paper is to find out the factors affecting the financial self-sufficiency and propose suggestions for promoting the improvement of financial self-sufficiency.The county-level government’s financial self-sufficiency ability represents the ability of the government at the same level to raise funds independently.The tax revenue share of the county-level government and the commitment of government functions are linked to the financial self-sufficiency.The proportion of tax revenue is positively affected by the financial self-sufficiency.However,the government,s functional commitment and financial self-sufficiency have a negative impact,so the division of financial resources and power is an important factor affecting the government’s financial self-sufficiency.Gansu Province is geographically located in the western part of China.It is at the level of underdevelopment at the level of economic development.The county-level government has low financial self-sufficiency and the level of public service supply is much lower than that in the central and eastern regions.From the perspective of the division of financial resources and powers,studying the financial self-sufficiency of county-level governments in Gansu Province can provide reference for the improvement of local government governance capacity in poverty-stricken areas.This paper has a certain theoretical basis:the theory of fiscal decentralization is the premise theory of the division of financial resources and power;public product theory embodies one of the reasons for studying the ability of financial self-sufficiency,that is,it has an impact on the economic and non-economic public goods supply preferences;The industrial structure optimization and tax revenue growth theory is the method guide to solve the problem of low financial self-sufficiency.Based on this theory,this paper analyzes the current situation of the division of financial power and the status of financial self-sufficiency of county-level governments in Gansu Province,and conducts the mechanism and empirical test of the impact mechanism.Finally,the corresponding policy recommendations are put forward.The research shows that the financial level,the financial self-sufficiency lag period and the scale of economic development have a significant positive impact on the financial self-suffmciency of the county-level government in Gansu Province;the level of expenditure and the proportion of added value of primary industry have a significant negative impact on the financial self-sufficiency of county governments in Gansu Province.According to the research results,combined with the status quo of the county in Gansu Province,through the further improvement of the division of financial resources and powers,it effectively solves the dilemma of the county’s financial capacity.The specific measures include:moderately expanding the taxation of county-level governments;and rationally defining the county-level government.The scope of the matter;accelerate the optimization and upgrading of the industrial structure of the county in Gansu Province.