Research On Fiscal Transfer Payment System To Promote Harmoniously Regional Development

The gap between inter-regional development and social welfare horizontal expands day by day. It is a new factor which restricts economic development in our country. What's more, there are urgent problems that China should solve at present, which are how to harmonize regional development, how to realize equalization of the basic public products and serves, and how to construct comprehensive well-off harmonious society in China. Traditional western economic theory advocates that government should control macroeconomic when there are market's failures. Fiscal policy is one of the macroeconomic policies used commonly. And the fiscal transfer payment system is an important aspect of fiscal policy. By redistributing financial funds in all estates of inter-governments, higher authority governments may regulate the subordinate governments'fiscal capacity effectively. It helps to reduce the gap of public services and alleviate the inter-regional gap. Fiscal transfer payment system in our country has been contributing to regarding the coordination development of regional economy since it was built up in 1994. But it has many imperfect places which need reforming and consummating urgently. Fiscal transfer payment system at aboard had more than 170 years'history, now it has formed a complete system. Some Chinese scholars have obtained some general characteristic. According to our concrete practice, they propose some prefect mentalities by inspecting developed country's fiscal transfer payment system to make the system specifical.Some other scholars have inspected the achievements of Chinese fiscal transfer payment system from demonstration angle. They also elaborate some betterments. However, these researches lack systematic characteristic. Besides, there is a few synthetic study about regional coordinated development and fiscal transfer payment system. Therefore, the synthesis discussion about fiscal transfer payment system has great significance to the regional coordinated development's function mechanism.Due to the specific conditions of different countries, the fiscal transfer payment system's contents, methods, amount, and so on are quite different. Compared with fiscal transfer payment system's situations in the entire world, there are three countries whose systems are better. They are as follows: the US's special allocation pattern (subsidy pattern), Japanese tax returning model (the state's relinquishing tax) and the financial equalization model of Germany. Through comparison and analysis, we can know that clear differentiation of governmental property rights and the governance is the base of fiscal transfer payment system. In the concrete implementation process, we must use the institution to operate and use the law to ensure strictly. In addition, we must adjust the system nimbly according to the concrete national conditions. For these reasons, in the process of consummating our country's fiscal transfer payment system, we'd better differentiate clearly property rights and the governances between central authorities and local authorities. Then we can adopt standardized, institution, legalization fiscal system and change the financial funds'center to foundation facilities, the culture and the education.Present fiscal transfer payment system in China formed on the base of tax reformation in 1994.The characters are as follows. First, fiscal transfer payment's dynamics and the amount enlarge gradually, and the increasing tendency is obvious. Second, the forms of transfer payment are various. Third, the division basis is not unified. Fourth, the fund migrates between the central committee and local authority's extension has the bi-directional capability. At last, the suitable support embodies the horizontal transfer payment's characteristic, but it is not standard and unification. Through several years'development, the fiscal transfer payment's multiplier effect displays gradually, it has adjusted the local fiscal resource disparity in a certain extent. That had guaranteed normal fulfillment function's need of all levels'governments. It also promotes equalization of regional basic public services. Besides, it helps to narrow economic gap between the east and the mid-west. However, fundamentally speaking, we put current fiscal transfer payment system into practice on the base of not changing the local implementation of the circumstances. The non-balanced condition which was in the original system has put into the new mechanism. This makes the new financial mechanism not solve the problems, which are different from fiscal resources'allocation un-equalization and great disparity of public services'levels. Instead, it enables this kind of disparity to be larger and larger. These two conclusions look like inconsistent. There are at least five reasons. First, the system target location is not accurate. Second, official duty's scope of all levels governments is fuzzy. Third, the transfer payment's structure is unreasonable. Fourth, payment standard is not normal. Fifth, the institution of a law is deficient.Guangxi enjoys preferential policies for the western big development and the ethnic minority areas. The establishment of China-ASEAN Free Trade Area maybe increases payment lengthways by central authorities. Thus we can select Guangxi as an area sample to analyze independently. Then we can check comprehensively and appraise the transfer payment system, which has typical significance. The recent years'statistical data indicates that above 50% of financial expenditure in Guangxi is from central transfer payment; In the growth of total area output value, 85% is due to the financial transfer payment's contribution; 41.23% of town resident dominating income comes from the transfer payment; 37.54% of villager income is also the result of transfer payment. By contrast, town resident dominating income in Guangxi can't compare with the average national income standard. The former is only 84.98% of the latter. Meanwhile, per villager's income is only 76.65% compared to average national income standard. Considering that basic public services are equal, and fiscal transfer payment could raise residents'income, maybe the central committee will enlarge vertical transfer payment to Guangxi. At the same time, Jiangsu, Guangdong started to cooperate with Guangxi in 1981. They help its economic development. This reduced economic disparity between Guangxi and the coastal area. While, with market economy's consummation, the resources began to concentrate in the area where the profit is larger. As a result, the new problems appeared. The cooperation enthusiasm drops. The project agreement rate and the implementation rate reduce. It's not good for economic harmonious development. In order to come true basic public services equalization and promote regional harmonious development, we must redesign and consummate fiscal transfer payment system.At the present stage, we should begin with the following four aspects. First, make sure the system goal is definite. That's to say, fiscal transfer payment makes up the regular revenue and expenditure gap of local finance. It also ensures a minimum standard of public services and guarantees regional non-balanced development. Simultaneously, it embodies the national policy guidance and push forward economy coordinated development. Under this localization of target, we can organize the fiscal transfer payment system vertically and horizontally. Second, consummate vertical transfer payment system. Above all, divide clearly affair rights between all levels governments. Then optimize transfer payment's structure, standardize transfer payment's way, increase the general transfer payment and determine its scale reasonably, clean up and reorganize special transfer payment. Third, set up horizontal transfer payment system from fund structure, operation way, computational method, etc. Fourth, speed up the construction of the fiscal transfer payment system's laws and regulations, promulgate "Governmental Transfer payment Law" as soon as possible, and safeguard legally transfer payment's smooth implementation.