From 1994, fiscal transfer payment as the most important integration of tax-sharing finance system has drawn more attentions of numerous scholars since China implemented finance system reform. Theoretically fiscal transfer payment is the mostimportant way to resolve equalization of the public service between areas. However in China, it is still existed many problems in the practice, especially the local government transfer payment has deviated the equalization target on certain degree. It will obstruct establishing the normal relation between governments in the far way. Therefore thestudy of equalization effect of the local government transfer payment has important theoretical and realistic meanings.The empirical analysis enunciated that the total transfer payment has good equalization effect, however the effect of different type transfer payment is different, the equalization effect of the general fiscal transfer payment is the most strongest, the equalization effect of the central government' special subsidy is lower than the general fiscal transfer, the effect of revenue from tax returned is the worst.The thesis also put forward some strategies to improve fiscal transfer system. Firstly, the government must change working talent and speed the public finance system reform; Secondly, the government must increase fiscal transfer payment; Thirdly, the government must establish perfect transfer structure and strengthen the management of especial subsidy; Fourthly, the government must build up perfect fiscal transfer payment system and improve the implement way of fiscal transfer, Fifthly, the government must establish regulation or law of fiscal transfer as soon as possible and insure the performance of policy.The main innovation of this thesis include: (1) Discussing the relation between the fiscal transfer and the equalization of public service completely and pointing out that the fiscal transfer is the main way to government to perform the equalization; (2) Discussing the function mechanism of fiscal transfer to perform equalization and pointing out that the system design of fiscal transfer and function to promote balanced growth of area economic contribute to equalization; (3) Analyzing equalization effect and problem of fiscal transfer payment and putting forward some strategies to improve the equalization effect of fiscal transfer payment. |