The Study Of Transfer Payment System In The Development Of West China

Now the difference of economy between the east and west china become larger and larger, our government promptly carry out the strategy of Developing the West of china, which is important for our country to maintain a balanceable, healthy and continual development of economy, as the same time, it is also a gut chance for west region of china to develop quickly and to catch up with east region as soon as possible. Transfer payment policy plays an important role in this strategy, but the present transfer payment system is far from perfect and standard. One of the important reasons is that it is short of an objective and fair basis or means, therefore to set up a scientific and standard transfer payment system appears particularly important. Firstly, I analyzed the economic meaning of Transfer payment and its goal. Transfer payment in this text refer to finance transfer payment among the governments. Its direct goal is to equalize the finance capability among different regions, thus they can provide equal public service. Secondly, I analyzed and proved the presently existing problems, which concerns the character of allowance and compensation of transfer payment. Because of the effects created by objective factor, for instance, nature conditions , different starting points of development and spontaneous regulations, economic developments among different regions are not equal naturally, so transfer payment which is used to compensate the economic differences caused by these reasons has the character of allowance. Other economic differences among different regions are caused by inclination of policy, undertaking of duty of national defense together with the differences of price related to in industrial and agricultural products, the differences of exchanging price in industry, and the great different prices between light industrial and heavy industrial products. The transfer payment that is used in compensating for these kinds of economic differences has apparent the character of compensation. In the third part of this text I studied transfer payment systems of other countries from various angles, such as the division of expenditure and revenue of central and local government. As the same time I exploredinsome common characters: standardizing transfer payment with law; giving prominence to dominant position of Macro Control and Regulation through central government concentrating financial resources; separation of taxes played a important role in financial balance; using standard formula to define the scale and distributing plan of transfer payment. In the last part of this text, namely the most important part, the principles of transfer payment are in the first place elaborated, for example scientific and legal, open and transparent, quickly carrying out. Next, large quantities of data are through statistical software (SPSS) analyzed and calculated, then main factors that effected transfer payment and the relevance among them are funded, and a set of equalized formulas related to transfer payment are put forward and tested. The results and the diagrams got from these formulas verified their reasonability and effectuality. Meanwhile they proved the unreasonable effect produced by present transfer payment system in our country too.