On The Transfer Payment System Perfect

Intergovernmental transfer payment is one of the important contents of the financial system, and it is one important tool to balance the economic development between central authority and the locality as well. The development of one country's economy and financial revenue and expenditure will inevitably result in vertical out-of-balance and horizontal out-of-balance, to which the inter-governmental transfer payment system which takes both efficiency and fairness into consideration is a suitable solution. China's transfer payment system was set up since the reform of the tax allocation system in 1994. Though it has undergone much improvement, there are still many unstandard places. The methods of transfer payment suitable for the actual conditions have great influence on the realization of the goal of the transfer payment system. Consequently, it is of substantial practical significance to make a study on China's circulating transfer payment system by combining its reality and furthermore to put forward improving suggestions.The main research frame of this thesis is as follows: firstly, through the comparative study on several foreign successful transfer payment systems the thesis obtains the terms under which the transfer payment system will make the largest income; secondly, by a positive analysis of China's current transfer payment system, this thesis draws out the defects that are existing in it; lastly, some suggestions to improve the intergovernmental financial transfer system are provided.The body of this thesis is made up of four chapters. The first chapter is the introduction, which mainly introduces the theoretical and practical meaning of the selected works and some definitions and bibliography related to this research. The second chapter is the comparative analysis on the transfer payment system at home and abroad. First of all, it makes a brief illustration on the transfer payment system and the distribution of the transfer payment fund since the foundation of the system of tax allocation, expounding that the defects of the transfer payment system are connected with the fact of being newly-built and the unbalanced economic development of the localitiesof our country. Secondly, since the transfer payment system adopted by U.S.A., Germany and Japan represent the dominant modes of transfer payment system all over the world, this thesis makes a comparative analysis on the transfer payment system of the above mentioned three countries, obtaining the conclusion that the key term under which the transfer payment system shall make the maximum effects is to establish scientific and stereotyped transfer payment means with the help of factor methods. Then, based on the above analysis, this thesis analyzes that the greatest problem existing in China's transfer payment is the random allocation of fund and low efficiency of fund use. Directing against the random allocation of the transfer payment funds and low efficiency of fund use of China, the third chapter, through a positive analysis, based on the data of 2000 and by use of SPSS, expounds that on the basis of the practical fiscal revenue and expenditure, scientific and stereotype methods can be set up to solve this problem. This part makes a calculation on the fiscal revenues ability and needs for expenditure of all districts on the basis of obtained data, and then makes a comparative analysis between the result and the actual data, proving that it is feasible to make the calculating data as the basis of the distribution of the transfer payment funds. The fourth chapter puts forward the improving suggestions for China's transfer payment system.The distinctive features of this thesis is that by testing and checking the raised transfer payment methods through the obtained data, it proves that stereotype transfer payment method based on the factor law is feasible.