Institutional Analysis. Below The Provincial Government Transfer Payments

Intergovernmental transfer system is an important part of the fiscal management system of a country. Since the reform of tax-sharing system in 1994, intergovernmental transfer system has been gradually improved. But as an essential part of the entire transfer payment system, the establishment of transfer payment system under the provincial level has always been neglected by scholars and practicians. So the author uses the data of Shandong province to analyze the problems of transfer payment system under the provincial level.This paper is made of five parts. Chapter one is about the introduction of transfer payment system, including the background of the subject of this paper, the concepts of transfer payment and research method.Chapter two is going to analyze the existing reasons for transfer payment system by using economy theories. The analysis lies in two facts: the first is the responsibility of local governments and the second is about the function of transfer payment.Chapter three is about to using the data of Shandong province to analyze the situation and the problems of the transfer payment under provincial level in China to interpret the existing reasons. At first, this part introduces the changes of the fiscal management in China before and after 1994 and analyzes the background of establishment of transfer payment system under provincial level. Second, from three facts, this part analyzes the situation of transfer payment of Shandong province since 1996. So three conclusions have come into being: 1. The total amount of transfer payment of Shandong province is not enough. The problem of horizontal disequilibrium in Shandong province also exists. 2.The structure of transfer payment of Shandong province is not reasonable. 3.The controlling capability of provincial government is inferior. The fiscal revenue of county and rural governments is not sufficient obviously. This part also analyzes the reasons from four facts on the degree of depth: fiscal management under provincial level, the changes about function of public finance, tax...