Research On Improving Transfer Payment Of China

Intergovernmental transfer payment is one of important tool to balance the economic development between central authority and the locality. The development of one country's economy and financial revenue and expenditure will inevitably result in vertical out-of-balance and horizontal out-of-balance, to which the inter-governmental transfer payment system. Since the tax-sharing system has started in 1994, China is exploring to set up modern fiscal transfer payment system meeting the requirement of market economy system. However, the "gradual progress" style taken in 1994 was very conservative, and even gave way to other fiscal reformation and policies. The research on the fiscal transfer payment system shows that with the deepening of the reform of tax-sharing fiscal system, the fiscal transfer payment system with Chinese characteristic has primarily been built up. In balancing the fiscal capacity between different regions and achieving the objectives of macro-adjustment, the system of fiscal transfer payment plays a more and more important role. But there are still some problems in this system that influence the realization of its desired objects, such as its unreasonable structure and defective system design. In spite of the differences on history and situation among countries, which result in disparities among transfer payment systems, regulated transfer payment system do have many in common from the whole. This paper tries to find out the characteristics of developed intergovernmental transfer payment systems through the deep study on the systems of the US,Japan,Australia and Germen, and the existed inner common places, then based on which, a few feasible politics on how to improve transfer payment system of China will be delivered.There are four parts in this paper. Fist of all, some comments will be made on theories of fiscal transfer payment, aiming to distinct the definition and necessities of transfer payment; Then, we will study the situation of recent intergovernmental transfer payment in china by two aspects, namely the structure and the system design, and figure out the defectiveness existed in fiscal transfers of China; Finding out the common places among developed countries by research on four developed countries as samples will be the following part; At last, based on preceding conclusions, advices on how to improve the transfer payment system , which are suitable to China, will be put forward.Chapter one includes two divisions. In the first division, intergovernmental transfer payment is stated from the original meaning and the layers contained. So we can define the intergovernmental transfer payment decisively and generalize the characters. In the second division, a series of theories of intergovernmental transfer payment can be summed up.Chapter two includes two divisions too. The whole dimensions and structure of transfer payment will be studied in the first division. The dimensions of transfer payment increase a lot in both absolute and relative quantity. But the structure of transfer payment is unreasonable in the amount of ordinary transfer payment, unregulated transfer payment and special transfer payment. In division two, the defectiveness of transfer payment system design is explained from six aspects, including irrational aim position, system confusion, feeble function, unregulated ordinary transfer payment system design and so on. The reason for defectiveness is explained as well.Chapter three is the core part of this paper, including two divisions, In division one, transfer payment systems of four developed countries are going to be introduced. In division two, general experience of developed countries will be excluded, which includes that: first, the power of government of each level is defined clearly; second, how to set the goal of transfer payment; third, how to choose the form of transfer payment; fourth, how to choose the model of transfer payment; fifth, how to regulate the transfer payment system; sixth, acting according to law more restrict.Chapter four is the close part and four divisions are included. In division one, a conclusion is reached that it takes long to decrease the regional disparities and equalize the public services of each area by expounding recent situation, In division two, the principles of perfecting transfer payment are stated. In division three, we set forth some political advices consisting of defining the near destination, regulating the transfer payment system, setting up the related law for transfer payment system and so on. In division four, under the long destination of transfer payment, we are tying to construct the long-period-frame from the goal of transfer payment, model choice of intergovernmental transfer payment and from reconstruction of transfer payment.