Heilongjiang Province For The Next Financial Transfer Payment Model

We had a very important reform of financial system in 1994,building a tax-share financial management system. We can say it is a milestone from planned economy to market economy. But its birth just a rudiment of public financial structure. If we want a complete reform, we have to built a financialtransfer system. Just through a canonical financial transfer system, we canmake equitable, reasonable and normative reallocation of financial resource, can achieve the final target of public finance, and can balance the development of different regions. In 1997, "the 15th committee" of CCP requested that to build financial transfer system in China. This is the common mission of the people dealing with finance theory and practice at present.In 1995, the ministry of finance made "The method of transitional finance transfer payment". From then, the center government began to transfer to the local governments in China. In 1996, our provincial government began to implement transitional transfer payment to the lower governments. It was new for us, we had to start from the facts, using other's advantage experience, advancing through explore. This paper try to build a normative mode of financial transfer to the lower governments for the provincial government and hope can contribute to the building of transfer system in China.This paper has four chapters. In the first chapter, introduce the background of the birth of financial transfer system in China. First, explain the concept of financial transfer, and then discuss the essential and function of normative financial transfer system, finally analyze the process and problems of center government's transfer payment and raise the impersonal demand of building afinancial transfer system to the lower governments in our province.In the second chapter, analyze the implement of present financial transfer to the lower governments in our province. First, explain the frame of tax-share financial management and the basis case of finance and economy in our province. And then, introduce the process of financial transfer in our province in the nearly few years. Finally, indicate the disadvantages of transitional financial transfer of our province, put forward the mission of perfecting the present system and building the ideal transfer mode.In the third chapter, we try to use the foreign successful experience and method for reference. First, introduce the common characteristics of transfer system in developed countries. And then, research the theory and mode of Canadian equalization transfer.In the fourth chapter, design the ideal mode of financial transfer to the lower governments in our province. First, introduce the basic value points and basic frame of ideal mode of financial transfer to the lower governments. Then, design the whole system and mode of financial transfer to the lower governments. Finally, indicate the restrict factors and find the solution way.