Rational Fiscal Decentralization and Extricating the County or Village-town Finance from Difficulties

Abstract

This article discusses the contemporary problem of the county or village-town fiscal difficulties from the view of the fiscal decentralization theory, and points out that the root of the county or village-town fiscal difficulties lies in the irrational system arrangement of fiscal decentralization on the basis of the statement of several basic principles of rational fiscal decentralization. The essential way to extricate from the county or village-town fiscal difficulties is to aim at rational fiscal decentralization among various levels of governments.