The Impact Of The Transfer Payments To Public Service Equalization

1994tax reform, making the central and local governments to reallocate financialresources, but because of its powers is not adjusted accordingly, the resulting hugefunding gap, resulting in financial power to move layers, layers of delegated powersof the situation, and thus lead inter-regional public service delivery disparities. Manyfactors of disharmony increasingly obvious: such as poverty, unemployment,education, injustice, social security, income inequality issues. In addition, our publicservices, there are not only "supply shortage " problem, there are also "enjoy uneven" issue. Although the current economic situation in the adaptation process ofdevelopment, this system has been constantly improved and perfected. However, ourcurrent system of transfer payments compared with developed countries, there arestill large gaps in the horizontal coordinate and solve the fiscal imbalance betweenregions and inter-regional public services equalization effect is not satisfactory. In thispaper, equalization of public services into a research point of view, study of theimpact of their transfer payments. Firstly, from the equalization of public servicesand transfer payments concept, connotation, a clear correlation theory. And on thisbasis to clarify the relationship between the two, that the transfer payments throughthe promotion of regional economic, financial growth, and promote inter-regionalequalization of public services implementations. Then, in Zhejiang Province, theintegrated use of statistical methods and econometric models, the descriptive analysisand empirical analysis together. Equalization of public services and transfer paymentsand transfer payments status equalization effect evaluation and analysis. Come to theabsolute amount of the financial transfer payment and relative amounts are showingupward trend, from structural analysis, the proportion of tax rebates decliningproportion of general transfer payments remained stable, the proportion of specialtransfer payments continued to rise. Descriptive analysis of statistical variablescoefficient of variation introduced by analyzing the Zhejiang Public Service2004-2010inter-county variation coefficient, examines the current status ofequalization of public services, city and county, Zhejiang drawn between education and medical input equalization levels in2004-2010rising conclusions. Econometricanalysis was collected Zhejiang province53counties and county-level city panel datafor2005-2009, based on econometric analysis using Eviews6.0software. Theeconometric model of the current effect of the equalization transfer payments and taxrebates, general transfer payments, transfer payments equalization special effectsempirical analysis through econometric model analysis, the tax return with theCounty, Zhejiang Province Public Service inequality there was a positive correlationbetween the widening gap between the inter-county public services; general transferpayments and public services, inequality is negatively correlated, there is conduciveto narrowing the inter-county, Zhejiang Province, the gap between the level of publicservices; special transfer payment of the equalization of public services degree ofinfluence is not significant; fiscal transfers from the equalization of public servicesaffect the overall effect, transfer payments played a catalytic role in equalization ofpublic services. Finally, combined with the actual situation, put forward thefollowing five aspects of a sound system of equalization transfer payments policyrecommendations: a clear financial transfer payment policy objectives, optimizingtransfer payment structure; regulate the allocation of funds transfer payments,scientific distribution of transfer payments; perfect performance appraisal systemtransfer payments, improve capital efficiency; accelerate transfer payments relatedlaws and regulations, protect the equalization to achieve the objective; improve ourprovincial transfer payments.