The Effect Of Fiscal Transfer Payment System In Undeveloped Region

residents of different regions enjoying the same basically fiscal treatment, but because of significant geographic differences between the fiscal resources, leading to the different levels of equalization of basic public services between the areas. In this paper, take Anhui for an example, analysis and research on the fiscal transfer payment system implementation effect in undeveloped regions, and hope that through analysis and study, improving the existing fiscal transfer payment system, realizing the equal access to basic public services.Based on empirical analysis method, through the construction model and measurement analysis, further study of effect in anhui province. In addition to the traditional fiscal capacity coefficient, the coefficients of variation analysis, but also introduced a panel data of regression method, and introduces the panel virtual variables were studied. In research on equal access to basic public services, this paper introduces factor analysis method, through the scientific selection of representative, which reflects the better transfer payment system of anhui equal level.Through the empirical analysis, we can see, with the increasing of central fiscal transfers to the Anhui Province, Anhui Province also increasing the intensity of the transfer payment system to the local government, and with the improvement of the existing fiscal transfer payment system, it has achieved a significant effect, but the absolute difference is still evident between regions. The differences in providing basic public services between inter-regional are also very obvious. Specifically, the first is until 2001 Anhui Province is begin truly enjoying the real transfer payments .before 1999, Anhui Province, is the net output of provincial transfer payments; Second, In every city of fiscal revenue per capita, transfer payments eliminate the 25% to 47% of per capita income gap. Through the Panel data,we can see transfer payment of wanbei is only eliminated 20% per capita income gap, lower than wanzhong 24 points and wannan 23 points respectively. Third, the research on basic public services, through the model extracted from the five major factors, on the whole, it is obvious that wanbei is the worst in providing basic public services, the best is Wannan; fourth, compared the fiscal equal and Equalization of basic public service, we can see that fiscal equal doesn't certainly accomplish the Equalization of basic public services.