A Study Of The Fiscal Transfer Payment System Under Province Level

Since the adopting of the system of tax distribution in 1994, a relatively normalized fiscal transfer payment system of central government to province level government has been formed gradually in our country, while the establishment of the system of fiscal transfer payment under province level is still at its exploring stage. Based on the real situations locally, many province level governments are endeavoring to establish and implement the fiscal transfer payment system toward the subordinate authorities by referring to the transitional transfer payment method of central authority to local authorities. This attempt has a positive effect on the development of local economy and the regime construction among grass roots. In Anhui province, a lot of efforts had been invested in the establishment of the transfer payment system within the subordinate authorities in recent years. Based on the real situations in Anhui province, the province government established the regulation which is a very meaningful exploration in building the fiscal transfer payment system among the province subordinate authorities. Each municipal and county level authorities takes a portion of funding from its own wealthy pool to apply the transfer payment to its subordinate county authorities and explores the establishment of the fiscal transfer payment system to its subordinate authorities as it rationally allocates the transfer payment funding from the province government. In summary, a preliminary achievement has been earned in Anhui province since the exploring for the establishment of fiscal transfer payment system under province level. But the effect of this new system is not significant yet because of the several limitations, such as, the confused definition of authorities among government agencies under province level, the lag of the administrative reform in local governments and the deficiencies in this system itself, and so on.In this thesis, a study concerning the fiscal transfer payment system under province level in our country was conducted by integrating the theory with practice. Several cases of the establishment of the transfer payment system in Anhui province were given and analyzed. First, a theoretic analysis on the fiscal transfer payment system under province level was performed. The concepts of the fiscal transfer payment system under province level and criterion on which the establishment of such a system is based were defined. The basic types of the transfer payment under province level were classified. Next, the problems in the establishment of current fiscal transfer payment system under province level in Anhui province were pointed out and thoroughly investigated by analyzing the establishment and implementation of the fiscal transfer payment system under province level in Anhui province. Lastly, the principle, basic frame and aim choice of the fiscal transfer payment system under province level in our country were proposed by an extension of the previous analysis in Anhui province. Several suggestions were given in order to improve the performance of the fiscal transfer payment system under province level in Anhui province.