| Intergovernmental transfer, as the core part of fiscal system, occupies an important position in our country. Equalization transfer is one of the most characteristic of Intergovernmental transfer which is distributed by deriving general formulation.Its equalization effect plays an important role to realize the policy goal of equalization of public service.But some scholars found that Standardized Fiscal Revenue did not achieve the equalization effect because of adopting fiscal support population as the indicator of capital allocation. According to use the method of standard score based on the analysis of the existing measuring method and though the panel data regression of per capital equalization grants between central government and provincial governments from 2002 to 2007, we find that equalization transfer do not dramatically reduce the sub-national disparities in China and some regions even appear the opposite:The regions with stronger fiscal capacity tend to receive more equalization transfer grants. Therefore, this article try to find the factors which affect the distribution of equalization transfer grants. Through the introduction of more indicators, we use the information of Chinese Communist Party’s Central Committee and put forward four methods which try to measure the distribution of political power. On the basis of the model of regression analysis and dovish analysis, we think that equalization transfer is positively related with political power by controlling other variables, the regions with stronger political power tend to receive more equalization transfer grants.In the paper, we summarize and analyze the distribution methods of equalization transfer published by central government, we find that some improvements both in formulation and indicators and the scope of equalization transfers are expanding. However, all the methods of equalization transfer is only about improvements in formulation and indicators, it is unknown to the public for the calculation process and the specific data,not to mention the capital allocation and performance evaluation. The opaque led to directly equalization transfer by a variety of factors, such as political power, in the actual configuration of interference, which affect its equalization effect. Then, we use principal-agent theory to analyze all the participants’ behavior whether is in conformity with the law. At the last, we make a conclusion that political power and administrative power have a significant impact on the distribution of equalization transfer under the existing system.According to the analysis of Intergovernmental transfer of the United States, Australia, Germany, and Canada, especially for equalization transfer, we find equalization transfer should be improved in two aspects of fundamental and technical. In terms of fundamental, at first, we should perfect the system of the power configuration and strengthen the supervision of power. We also need to clear all levels of government finance rights to achieve the unity of rights and powers. Finally, it is important to strengthen information disclosure and improve the openness and transparency.Also equalization transfer need to be improved in the aspect of technical, such as build scientific and reasonable distribution formula. |
