Abstract: Information asymmetry will lead to the lack of supervision from the central government, the society and the residents over the public decision-making by local governments. Therefore, reducing the cost of information can constrain the discretionary power of local governments, which can restrain the investment impulse of local governments and enhance the responses of local financial authorities to the people’s livelihood. Modern ICTs such as the Internet can realize this impact mechanism. Further research shows that improving information communication capabilities can enhance the responses of local financial authorities to the people’s livelihoods, thus improving the development of public services for the local people’s livelihood. Therefore, in order to carry out the financial construction for people’s livelihood, we should not only carry out the financial system reform which can have permanent cure effect, but also pay attention to the external technical which may restrain the treatment of the symptoms. We should vigorously develop the network communications, give full play to the modern ICT technology in promoting the financial constructions for people’s livelihood and the development of local public services for people’s livelihood, strengthen the special education of modern ICT technology, and urge the residents to use modern ICT technology rationally to reflect the appeals of people’s livelihood.

Key words: local finance; information communication capabilities; livelihood response; internet; modern ICT