Abstract: Scientific funding mechanism is the premise for the healthy running of the basic endowment insurance for the urban and rural residents in Wuling mountainous areas.However,the establishment of a scientific funding mechanism should be based on the local economic development level,financial strength,residents’ income,and the idea of provision for the aged.Only by rigorous arguments and repeated investigations can the funding principle as well as reasonable standard,subject,channels,and ways be properly proposed.Theoretically,importance should be given to the following aspects：firstly,the connotative type of development should be adopted,and the new type of urbanization quickened;secondly,the principle of coerciveness,economical efficiency,and moderation should be taken into consideration;and thirdly,policy publicity and the residents’ sense of insurance should be promoted.

Key words: basic endowment insurance system;funding mechanism;economic development level;residents&rsquo, income;idea of provision for the aged;Wuling mountainous areas