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Study on the Debts of the Western Townships in Our Country

Author: WangLin
Tutor: ChenBenFeng
School: Chongqing University
Course: Industrial Economics
Keywords: western township township debt effect reasons countermeasures
CLC: F812.5
Type: Master's thesis
Year: 2009
Downloads: 87
Quote: 0
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Abstract


As China’s most basic level of government, the townships have huge debt pressure. It has become the Obstacle of the new rural development, which is currently in urgent need of solution. Weak economic base of the western region, scarce financial resources, tax reform, the sharp drop in township revenues and expenditures, as well as rigid unchanged ahead of the contradiction between spending more and more prominent have drove the western township into financial risk. How to solve the problem of indebtedness of the township? How to resolve the financial liabilities? And how to coordinate urban and rural development in order to steadily push forward the "western development", to promote the western economic and social development ? They are all become huge problems.As a socio-economic problems to deal with properly, township debt has grass-roots level to raise the building of the Government’s funds, ease the financial pressure, the development of the local economy to provide a proper way; to deal with bad debt the size of the township is too large, less than the solvency of the township, the risk of increased debt, the township will not only hinder the pace of economic development, and will directly affect the government’s image and affect the normal operation of township agencies and rural social stability. To resolve and prevent liabilities, the township must understand the causes of indebtedness. Debt of the western townships has complicated factors, both historical factors as well as practical reasons; management is the township’s own reasons, and also closely related to national policies; not only due to the imperfections of the financial system, due to inadequate administrative system; both economic factors, there are social problems; both internal impulses as well as external pressure. The solution, therefore, is difficult. This article summed up the western region in the provinces (cities) the status of the township based on the balance found in the agricultural economy of the poverty-stricken areas as the main formation of the township of debt, with China’s existing administrative system and financial operation of the system, as well as the political system has a great relationship. Thus, the solution to the debt problems of the western townships, it needs from the above aspects, with a focus on deepening of the administrative system and further promote the reform of township and town institutions, improve the tax system in the financial system, reduce the scope of the township fiscal powers, the increase of financial payments. At the same time, in order to effectively manage and actively solving the debt as an opportunity to be part of the township into the local public debt liability management to improve efficiency in the use of the balance, strengthen the budget management of township finances.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > National bonds, bonds, foreign debt
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