The Performance Evaluation Of The Equalization Of Basic Public Under The System Of Financial Transfer Payment In China

The local governments have implemented the policy decisions about improving the basic pubic services formulated by Central committee and State council since "Eleventh Five-Year plan". During "Twelfth Five-Year", The Basic public service system will be more perfect. More peasants will benefit from the Social insurance and the Basic health, furthermore their life can be guaranteed by the New rural social pension insurance and the New rural cooperative medical care; after establishing the Free compulsory education and Public employment service system, the chance of children and migrant workers has been greatly improved; the urban and rural social assistance and the protection of housing project accelerated after strengthening the protection of basic social services and basic housing. As the "12th Five-Year Plan" is the critical period for building a well-being society in every sense, improving and perfecting the Basic public service system is an important measure. However, there are some problems on advancing the equalization of Basic public service owing to a lack of perfect fiscal transfer payment system.The article tries to prove that whether fiscal transfer can promote the Basic public service or not through analyzing the data of central region in China during1995to2011.The total sum given to central region is too small to make standard of public service low indirectly as the economics of central region is weaker than eastern coastal area. At the same time, the differences among investment preferences make the public service in central be presented status of inequality.The conclusion reveals that there was a big difference among the government receipts of four major economic zones in China, but the difference in central region was least. Along with the development of six provinces in central region, the difference of central region’government became expansion. This phenomenon was not good to fulfill the target on equalization of Basic public service. And then the conclusion also shows that fiscal transfer payment could promote the standard of Basic public service, however, the effect wore off after2006. The reason of this phenomenon is that the difference of investment for Basic public service and the fund of some projects accounted for the proportion expenditure was declined. Last, the article puts forward relevant policy suggestions about how to improve the standard of Basic public service and fiscal transfer payments.