The Performance Of Liaoning Province Fiscal Longitudinal Transfer Payment

China’s intergovernmental fiscal transfer payment system is an important component ofChina’s financial system, which is in order to achieve the objectives of the relative balanceof regional finance. Regional fiscal balance includes the financial balance, such asvertical and horizontal fiscal balance.Our government has reformed the tax system reform in China since1994;Liaoning province is establishing a suitable system of transfer payment of its own. So far, weare ought to know the effectiveness of implementing province transfer payment, and whetherit is making a hit. We should carry out performance analysis and evaluation. Based on verticaltransfer payment in Liaoning Province, the thesis focuses on the performance of verticaltransfer payment.The thesis locates in analyzing and evaluating the performance of vertical transfer payment ofLiaoning Province, paying attention to vertical balance to analyze the two factors effecting14cities in Liaoning Province which includes welfare levels and standard of living, finally,obtains recommendations to improve the performance of vertical payment system.When analyzing the effectiveness of longitudinal balance, we contrast the index of thetwo financial levels’ change in order to get the rate of avenue to expenditure after transferpayment in Liaoning Province, we can adopt standard deviation to calculate the averagedegree of deviation and analyze the performance transfer payment using standard deviation,we can examine the performance of longitudinal system between province and cities whetherto achieve the target, and analyze transfer payment makes an impact on local fiscalenthusiasm. The thesis analyzes the differences among regions in Liaoning Province, andthen we compute Gini coefficient of average level of financial revenue and expenditure to getthe effectiveness of the total amount of transfer payment and capital for the balance the regions.When we analyze the relative level of validity of14cities in Liaoning Province usingtransfer payment revenue to improve the welfare and livelihood, we select DEA analysismethod, we choose a region’s capital fiscal revenue and the level of average transfer paymentamount received as input indicators, such as the number of teachers in middles schools per10000residents, the health care workers in hospital per10000residents, the number of booksin library per10000residents, mobile communications coverage, rate, social securitycoverage rate, residents’ disposable income as input index, and analyze the regions’ DEArelative validity, indicating the performance of longitudinal transfer payment and makingsuggestions for improvement and strategies...