It has become a common understanding that the establishment of rural subsistence allowances system is an important measure to implement Scientific Outlook on Development, build a harmonious socialist society and build a new socialist countryside. The problem is that the lack of a stable source of new subsistence allowances is a realistic problem that local governments in the central and western regions have to face directly, and it is also the main constraint that has not dared to take the initiative so far. As we all know, in most cases, the transition from the relief system for poor rural households to the rural subsistence allowance system requires local finance to increase investment. Because the relief system for poor rural households is similar to the traditional regular quantitative relief, local governments can adjust the number and level of their security according to their own financial flexibility to make it within the scope of government finance.
The establishment of the sharing mechanism between the state and local finance is undoubtedly the institutional guarantee to realize the financial sustainability of the rural minimum living security system. However, the actual situation is that the current rural subsistence allowance system mainly adopts the financing mode of city and county finance sharing and provincial finance giving appropriate subsidies, and the central government has not arranged rural subsistence allowance funds so far.