The Research On Performance Evaluation Of County As The Basis To Undertake Financial Transfer Payment System

How to build a central government and local governments a good relationship, has9.6million square kilometers for a1.3billion population, is crucial to China. Before1994, in the "decentralization" as the momentum for reform in the context of "fiscal responsibility" system so that local governments have greater financial autonomy, and the "decentralization" is accompanied by the national fiscal revenue to GDP and the central budget revenues accounted for the proportion of total budget revenues declining, the "two proportions" in1993were reduced to11.2%and22%, and gradually endangering the central government finances. Central and local fiscal capacity disparities directly affect the coordination of intergovernmental relations, in order to reverse this financial situation, which began in1994of the "tax reform" aims to re-adjust the distribution relationship between the central and local governments, through this reform, with the "two proportions," the rapid rise in the central financial position has improved rapidly, the central government in intergovernmental relations back on dominance.County government is China’s basic public services supplied directly mainstay intergovernmental fiscal transfer payments ultimate point. Since1994, large-scale fiscal transfers county governments have become an important source of revenue, from1995to2008, the county government received higher transfer payments from the total size of293.237billion yuan increased to2.147522trillion yuan, an average annual growth rate of11.6%. Financial transfer payment policy effects that can be played with intergovernmental management system is closely related, in recent years, our country has implemented a "provincial governing county" system reform is bound to be the county’s economic and social development have a profound impact. It was against this backdrop, this paper analyzes the county level data samples examined China’s fiscal transfer payment system factors; and is located in the western region of China’s Sichuan province,"provincial governing county" reform as a case study, From the county’s economic growth and the county public service supply two aspects, the financial transfer payments and "provincial governing county" reform policy effect empirical analysis. The main contents and conclusions are as follows: Firstly, This article uses the county-level social economic data during1994to2009of china. Meanwhile, it establishes econometric model to testify on the factors. They affect the transfer payment policy in China. The study suggests that those county regions with poor self financing ability and low fiscal effort degree have gained more financial transfer payment. It indicates that since our country was conducted the tax sharing system reform, promoting fiscal equalization had been the basic goal of conducting transfer payment from the central to local regions; during the years between2002and2009, those county regions with low level of education supply had obtained more financial transfer payment. It indicates that when comparing to the early period of the tax sharing system reform, the central government has started to focus on the effect on equalization of basic public service. The research also shows that the county economic development level and the scale of government personnel are positively related to financial transfer payment, which indicates that "economic efficiency" and maintaining the normal operation of local governments are factors remained to be taken into consideration by the central government during the transfer payment allocation process.Secondly, we will study the Chinese perspective on the implementation of "provincial governing county" reform of the county area, empirical tests of the financial transfer payments and the "provincial governing county" reform on the county’s economic growth. Sichuan Province,70counties use panel data comparison study found that due to the reduced level of financial management and decentralization of economic management authority, increasing the county government’s fiscal autonomy and to mobilize the enthusiasm of its economic development, fiscal transfers and "province straight county "reform were significantly promoted the pilot counties (city) economic development.Finally, the paper distinguishes between "economic" and "non-economic" public service, empirical tests of the financial transfer payments and the "provincial governing county" reform of the county of public service provision.70counties in Sichuan Province Based on Panel Data of comparative studies have found that financial transfer payments and the "provincial governing county" reform were significantly promoted the pilot counties (cities) of the transport infrastructure, health services supply level, but significantly reduced pilot counties (city) supply level of basic education.This study evaluated not only for China’s fiscal transfer payment system and the effects of policy-oriented sample provides a county-level evidence, but also for "provincial governing county" full implementation of reform in the country provides empirical support. The empirical analysis based on the conclusion that the future reform of this article needs to start from the design of the system, specific policy recommendations include:(1) to build a "county" as the basis to undertake financial transfer payment system;(2) to adjust the allocation of funds transfer payment structure to strengthen its equalizing effect;(3) performance appraisal system reform to achieve the positive effects of fiscal transfers;(4) establishment of financial regulatory mechanisms to strengthen the county government’s fiscal constraints.