Research On The Incentive Effect Of Transfer Payment On The Supply Of Basci Public Services In Chongqing County

Improving the specification below the provincial level of financial resources allocation mechanism,as well as promoting equal basic public services as the goal orientation of the public finance system,is not only an inevitable requirement for accelerating the reform of China’s fiscal system and realizing the goal of national governance modernization,but also an important means for effectively narrowing regional gaps and promoting balanced and coordinated regional development based on the concept of shared development.At the present stage,China is at an important stage to pay more attention to improving people’s well-being,enhancing inclusive growth and achieving shared development.Whether the transfer payment can effectively promote the increase of the expenditure on basic public services of local governments and optimize the structure of the expenditure on basic public services has become a hot topic in academic circles.In order to explore the incentive effect of transfer payment on the basic public service supply of county-level government,this thesis focuses on the following four key issues with Chongqing as the research object:Firstly,what is the relationship between the scale of transfer payment and the supply level and supply structure of basic public services in counties.Secondly,combined with the institutional characteristics of Chinese-style fiscal decentralization,we further consider how the expansion of transfer payment will affect the basic public service supply of county-level government under the influence of longitudinal fiscal imbalance effect,economic catch-up effect and the joint effect of the two.Thirdly,what effects do different types of transfer payments have on the basic public service supply of county-level government,for different regions of Chongqing,what are the effects of different types of transfer payments.Fourthly,what effect does the change of transfer payment structure have on the basic public service supply of county-level government.The thesis firstly introduces the research background,research significance,technical route,research content,research methods and existing innovation points.Secondly,the theoretical basis of the thesis--fiscal decentralization theory,public goods theory,national governance theory,efficiency and equity theory,principal-agent theory as well as relevant domestic and foreign literature are systematically and briefly reviewed.Then,the thesis discusses the internal mechanism of the influence of transfer payment on the supply of basic public services theoretically and constructs the incentive mechanism of financial transfer payment.Finally,the empirical study is carried out by using the data of 38 sample counties in Chongqing,and the main conclusions are drawn as follows:Firstly,the increase of transfer payment can significantly promote the expansion of expenditure on basic public services,and there is an obvious "fly-paper" effect.To be specific,the promotion effect of education service expenditure is the largest,while the effect of medical and health expenditure is the smallest.Although,transfer payments can correct the negative impact of vertical fiscal imbalance or economic catch-up on the supply level of basic public services,under the joint influence of the longitudinal fiscal imbalance and economic catch-up factors,the transfer payment cannot effectively realize both of them at the same time,and the effect of the transfer payment will be greatly weakened.Secondly,there is a nonlinear relationship between the transfer payment and the structural bias of basic public service expenditure.To be specific,there is an inverted U-shaped relationship between the scale of transfer payment and the total expenditure of basic public service or the expenditure of various categories of basic public service.Through the threshold model test found,when the regional fiscal vertical imbalance or economic catch-up is at a certain level,the bias of basic public service expenditure structure presents a gradually increasing trend.However,when the regional fiscal vertical imbalance or economic catch-up is at a high level,the positive incentive effect of transfer payment will be weakened.Thirdly,the influence of different types of transfer payments on the supply level of basic public services is obviously different.By comparing the empirical results in different periods,it is found that for Chongqing county as a whole,the general transfer payment has a significant positive effect on the improvement of basic public service supply level of county-level government.The effects of special transfer payment and tax refund have changed to some extent with the change of time.To be specific,the influence of special transfer payment on the level of basic public service supply of county-level government has changed from non-positive incentive effect to positive incentive effect.The incentive effect of tax refund on the basic public service supply of county-level government is obviously weakened,showing a relatively limited promotion effect.Fourthly,the influence of different types of transfer payments on the supply of basic public services has obvious regional differences.For the main city and west district of Chongqing,the increase in the quantity of general transfer payments can positively promote the improvement of the supply level of basic public services in this region,while the increase in the quantity of special transfer payments can inhibit the improvement of the supply level of basic public services of local governments.For the southeast and northeast area of Chongqing,their effects are opposite to that of main city and West Chongqing area.Fifthly,there is a close connection between the structure of transfer payment and the level of basic public service supply in a region.In terms of general structural changes,increasing the proportion of general transfer payments and special transfer payments can have a positive effect on increasing the level of basic public service supply in a region.However,with the continuous improvement of the supply level of basic public services in the region,the increase of the proportion of general transfer payment will weaken the supply incentive of basic public services provided by county-level local governments,while the increase of the proportion of special transfer payment will strengthen the supply incentive of basic public services provided by county-level local governments.In terms of relative structural changes,compared with regions with lower basic level of basic public service,increasing the proportion of special transfer payment relative structure has a greater promoting effect on the increase of basic public service supply level in regions with higher basic level.Finally,according to the theoretical analysis and empirical research results,the thesis analyzes and evaluates the policy changes of the financial transfer payment system in China,as well as constructs the incentive mechanism and constraint mechanism of the financial transfer payment in Chongqing.The thesis puts forward some suggestions from carrying out reform of the public finance system in which power and financial power are unified,establishing a financial transfer payment system with incentive mechanism,building and improving the performance supervision system of transfer payment,improving the diversified evaluation system for local government performance,exploring a horizontal financial transfer payment system within the city,strengthening efforts to solve key problems in basic public services.The thesis provides effective ideas for standardizing the public expenditure behavior of county-level governments,enhancing the guarantee ability of basic public service supply,optimizing the structure of basic public service supply in counties,promoting equal development of basic public service among regions,and improving the allocation efficiency of financial transfer payment funds.