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Rural compulsory education, medical health, social insurance and environmental protection, etc involves rural sustainable development and cause serious shortage in supply. Now, local government and farmers mainly assume rural compulsory education’s fund. But due to the low income and limited financial condition of the local government, the education facilities are quite backward, campuses are tattered and faculty is poor, which totally can’t satisfy rural students’ demand on compulsory education. According to state statistics bureau, our country’s rural residents’ education period is as low as 7.6 years and rural residents having primary and junior high school educations account for only 75% of the total rural population. The rural medical health care level is backward. The rural people which accounts for 70% of national total only occupies 20% of state public health resource. And rural cooperative medicine coverage rate is as low as 10%, and remaining 90% of the rural people should buy medicine on their own, so they have feeble capacity to resist heavy diseases. The rural social insurance system is imperfect, such as narrow coverage, low socialized degree, the government is unable to provide the basic social insurance to all rural people. During recent years, our country’s ecologic environment has deteriorated, fertility of soil has reduced, and water resources have become poorer. Although the nation has adopted a series of measures, such as program for conversion of cropland to forest, returning the herd to grass, South-to-North Water Transfer, etc, but most countryside still lacks actual measures made by government. The most serious thing is that, some local governments, for the purpose of seeking short-term economic development, even encourage good economic profit but heavy polluted enterprise to make expansion and improve output, bringing serious danger to rural sustainable development. 3.2 Imbalance of Rural Public Goods Structure Caused by “Top to Bottom” Supply Decision System Our country always follows the “Top to Bottom” rural public goods supply decision system, which means rural public goods supply isn’t decided by farmers’ own needs, but from the up to down decision procedure and decided by superior government, therefore, the imbalance of rural public goods structure is resulted from. In order to pursue own achievements and benefit, all levels of policymakers always prefer these public goods with short-term profit and obvious political achievement, such as various target-reaching activities and well-off projects, to the long-term and recessive public goods, such as rural development strategy, rural education, medical health and environmental protection, etc; and also prefer visible and obvious “hard” public goods, such as water facilities subject to inspection, rural power network reform and traffic & road construction, etc, to the “soft” public goods, such as promotion of agricultural research, general planning of agriculture development, construction of rural information system and rural laws and regulations, etc. 3.3 Lack of Efficient Supervision on Rural Public Goods Supply Fund Caused by Incomplete Budget and Asymmetric Information Rural area’s reserve planning, fund-raising and apportion are typical fund outside of the budget and the income condition will not be reported to people’s congress and villagers, heavily lack of united budgetary management and its usage has the features of random and arbitrary.