Study On The Intergovernmental Transfer Payment System Performance In China

Intergovernmental transfer payment system is an important part of the fiscal management system, and its effect, which is reflected by performance of how intergovernmental transfer payment system adjusts vertical balance and horizontal balance in fiscal field, largely influences the effect of fiscal management system. However, there are many researches about such system itself, and only a little study on quantitative analysis. So this thesis chooses the study on its performance as the footing, and discusses the effects from the point view of the fiscal vertical balance and horizontal balance.Combining the quantitative analysis and qualitative analysis, this thesis makes a positive study on the system performance by plentiful time-series data and Cross-sectional data. And there are many charts to show the conclusion directly.Based on the basic fiscal theory consideration on this issue, such as the economic principles about vertical and horizontal balance in fiscal field, the author compares the development of intergovernmental transfers system both here and abroad, whereafter studies its performance by quantitative analysis through comparing the fiscal status before and after the transfers is carried out. Subsequently, this thesis analyzes the factors affecting the performance, and finally, puts forward some suggestion to improve the performance of the system. The main conclusions are as follows:1. The performance adjusting the fiscal vertical balance is high. Since China carried out the sharing-tax fiscal system in 1994, the finacial structure between central government and local government had been unbalancing, and local governments that own 50% revenues can't afford for the multitudinous expenditures. After the intergovernmental transfers, such situation has changed largely: (1) the financial self-supply ability of Local government has been improved greatly. Without the fiscal transfers, the local government could just satisfy 60% payment demands, but the fiscal capital transfers from the central government to local government, which improves the local...