Research On How To Improve The System Of Fiscal Transfer Payment Of China

Fiscal transfer payment is an important system among governments' financial relations.Since the tax-sharing system has started in 1994, China is exploring to set up modern fiscaltransfer payment system meeting the requirement of market economy system. The research onthe fiscal transfer payment system shows that with the deepening of the reform of tax-sharingfiscal system, the fiscal transfer payment system with Chinese characteristic has primarilybeen built up. In balancing the fiscal capacity between different regions and achieving theobjectives of macro-adjustment, the system of fiscal transfer payment plays a more and moreimportant role. But there are still some problems in this system that influence the realizationof its desired objects, such as its unreasonable structure, un-unified measures, un-standardizedmanagement, and so on. This research analyzes the reasons why there are so many problemsexisting in fiscal transfer payment system, as well as gives policy suggestions on improvingfiscal transfer payment system, including specifying the aim of fiscal transfer payment system,clarifying the financial duties of the government of different levels, optimizing and adjustingthe structure of fiscal transfer payment, perfecting fiscal transfer management system,building up and perfecting monitoring system, reducing the levels of governments, reformingadministration system, setting up local tax system, and enlarging the local government fiscalpower.