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

Along with the gap of the economic development between the west region and the east region in China becoming wider, the whole economy would be inevitably affected. In order to eradicate the gap, Chinese government carry out the strategy of Developing the West of China. Fiscal transfer payment system is a general means adopted by other coimtries to coordinate fiscal allocations, to ensure the equality of social public service between different regions. Furthermore, it also is an important macroeconomic policy taken by governments to coordinate the development of different region's economy. Fiscal transfer payment system, which was formulated by Chinese government after Tax-separating system reform starting at 1994, ensures the developing strategy in the west region operating smoothly. However, as for the west region of China, current fiscal transfer payment system is lower effective and less standard, which to some extent limited local economy. So, in view of promoting the west region economic and social whole development and catching up with others, it is very meaningful to study fiscal transfer payment system adopted by Chinese government in the west region overall.On the basis of fiscal transfer payment system basic theory, this paper analysis present situation of financial transfer payment system of the west region of China and present existing problems in it. At last, drawing the successful experience from other countries, this paper put forward the appropriate and scientific measures for the development of the west region of China.