Current Financial Transfer Payment System On The Local Impact

China's full implementation in 1994, the tax sharing system, which laid the basic requirements of market economy the financial relationship between central and local framework for the foundation, but due to population, geography, resources and other factors, China's regional economic development is uneven. To address the issue of balanced regional as supporting The reform measures, the central government in the investigation and based on international experience, and gradually establish and develop from a fairly standard transfer payment system. With the system of intergovernmental fiscal relations improved and the central macro-control capabilities, the central place on the balance of payments has been investing to increase transfer payments, transfer payments system redistribution gradually. Transfer payment system to narrow the development gap between regions, promoting inter-regional equalization of basic public services, has played an important role.Currently the central and western areas, particularly the grass-roots financial, fiscal transfer payment income at the local share of total income in rising, transfer payment system on the impact of local economic and social development is more and more, raising the level of grassroots financial financial protection, to promote inter-regional equalization of public services, supporting local economic and social development played a positive role in promoting. But, as the current transfer payment system is not perfect, and local governments will also adversely affect the formation of some of the main manifestations:financial transfer payments make up for low, affecting the local self-provision of public services; local governments dependent on transfers strong anti-risk ability to affect the place itself; incentive is not obvious, where an effort is not strong; equilibrium of limited regional disparities, regional disparities increased so gradually.Although the current transfer payment system has been studied a lot of discussion, but most of them from the theoretical thinking and macroscopic analysis, Nanyang City, as a less developed area in central populous city, agricultural market, weak economic foundation, the transfer payments plays an important local revenue share of transfer payments obvious effect on the local financial impact. In this paper, drawing on the basis of previous studies at home and abroad, trying to Nanyang City in this specific instance of the analysis and study start, the current effectiveness of the financial transfer payment system and problems of empirical analysis, in order to further improve the transfer payment system with specific recommendations comments and suggestions, so this research has strong practical significance. In the course of this major government economics, finance, local finance and other theoretical guidance, comprehensive public administration, public policy, intergovernmental fiscal relations and other related research, in line with theory and practice, normative analysis and empirical analysis combination of the basic ideas, mainly through empirical analysis and normative analysis approach, on the transfer payment system on the local empirical analysis of the financial implications for the transfer payment system available to the theoretical and practical basis.