Abstract: After the reform of rural taxes and fees ,township financial difficuhies become increasingly dominant,and the shortage of financial resources available in township thereby affect the normal operation of town and township organizations.ln rural areas, the most basic public services badly lack funds,the huge debt which township finance affords faces digest difficulties.The reasons why township troubles in the big plight is the imperfection of the current tax system,the unreasonable of the township financial system and the overstaffed of its agencies,and the imperfection of the financial transfer payment system.Therefore we must vigorously develop the local economy,develop new sources of revenue to increase township revenues,and actively promote rural reform of the administrative system,change the functions of township governments,and reform the township financial management system,increase the financial transfer payment and guarteen the necessary supplies of the rural public goods.At the same time,we must take positive and effective measures to resolve the township debt and so on.