Local Government Financial Transfer Payment System Research

Intergovernmental Fiscal Transfer Payment System is a balance of financial capital and financial system which is an important part of the national financial system.through transfer payments, affluent areas will transfer part of the revenue to the relative poverty of the region, governments at all levels to balance the financial level.sound fiscal transfer payment system can enhance the financial macro-control capacity narrow the gap between locals,reasonable regulation,guide Local financial activities promote regional economic coordination and balanced the development of social undertakings.The transfer payment in China now has been based on the reform of tax system in 1994 which is playing an import role in the society, but the design and efficiency judges of the Fiscal transfer payment system still have lots of issues such as the total size is too small, the structure is irrational, and the distribution method is unscientific etc. The existence of these problems is not fit for building a harmonious society in China. So the study of transfer payment system, especially intergovernmental fiscal transfer payment system at local level is a topic of great practical significance now.The text begin with the theoretical analysis, based on the current situation of our intergovernmental payment system, especially the situation of intergovernmental payment system at local level , use other countries' system for the reference put forward to some corresponding suggestions which including analysis and designing the measure of governing the county directly by the province system.