Equalization Of Fiscal Transfer Payment System Mode Study

Providing equalized public service is basic governmental responsibility. The fiscal transfer payment is the centre of intergovernmental fiscal relations and a powerful fiscal arrangement that equal distribute the financial resources. How to design equalization system, which can narrow the income gap between regions, cities residents and make residents of different regions able to enjoy public service equitable and reasonable have significant important realistic meaning.Starting with the basic theory of equalization and fiscal transfer payment, this dissertation analyzes the current situation and existing problems of Chinese fiscal transfers system and provide salutary lessons for the further adjustment and perfection of the reform through discussion of different kinds of equalization model in other countries and on the basis of successful experience in developed marketing economy countries.In principle, the character of equality and efficiency in public finance system requires constructing the equalization transfer payment system, which can help realize equalization and promote equalization of basic public services. In reality, the scientific development concept and people-oriented harmonious society theory also objectively hold to promote equalization of basic public services from overall situation and the strategic high level. This means realize equalization of basic public services through equalization transfers, and let more people enjoy the fruits of opening up and economic growth, coordinate variety of interests in the reform process. Looking from the Western country's equalization practice, their equalization system often adopt model from the fiscal capacity or the expenditure need perspective. Australia build equalization system from both fiscal capacity and the expenditure need, but in Canada and Germany, their equalization system only considered the fiscal capacity aspect.In this article,through calculation Theil index of the fiscal revenue and the average fiscal revenue per capita to the county level before and after transfer payment in China, we obtains indicators which can synthesize reflected our country's equalization effect of intergovernmental transfer payment. Through observing these indicators, we conclude that Chinese transfer payment has played a critical role in equalization of fiscal capacity. However, through further analysis of these indicators, the fiscal capacity gap was basically at a fixed level, and have slight rise trend. This means that in order to further achieve equalization, the Chinese mode of fiscal transfer system needs to be improved.Finally, this dissertation give some suggestions on how to improve Chinese equalization model of fiscal transfer system, from goal setting and realization path, design principle, specific design of the equalization system and mode selection, performance appraisal to the related matching policies.