Research On The Legal Issues Concerning Transfer Payment Between Government Of Different Level In China

After the renovation in 1978, in more than 30 years, China has made great progress and people’s living conditions have been improved. But there are also some problems. One of them is the big gap between different groups of people. To resovle this problem, transfer payment system can be used as an effective tool. For example, through transfer payment system, central government reallocates its resources and helps the poor provinces and promotes social harmony. Transfer payment is an important way to promote the equality of fundamental public services. Western countries use this method as a good tool to reduce the economic difference between districts. In 2014, the new Budget Law was approved by National People’s Congress, which has given new guidelines to carry out transfer payment system. But because of the unclear division of power and duty among central government and local governments, and other reasons concerning the legal part of transfer payment, the system of transfer payment in China does not work well. China needs to learn from western countries to promote the law and the system of transfer payment rules.In this article, the basic theory of transfer payment is used as the foundation for further demonstration. The history and present situation of transfer payment system is also investigated. To resolve the legal problems of China’s transfer payment system, this article gives several important policy suggestions. In future, by continuously improving the system of transfer payment, the public revenue will be used more efficiently and the basic fundamental public services will reach across the country.