Research On Optimization Of The Structure Of Transfer Payment In China

In 1994 after the tax reform in our country, in order to adapt to the financial management system requirements, established the fiscal transfer payment system. Financial transfer payment system is to make up for the fiscal revenue between the central and local government vertical and horizontal imbalance. An important means of promote regions in our country, especially in poor areas, to realize the equalization of public services and fiscal capacity between regional balance. Along with our country economy has obtained the development which progresses by leaps and bounds, the fiscal transfer payment system reforms constantly and perfects in our country, but there are still some problems and the insufficiency. Outstanding performance in the central and local governance and spending the responsibility is not clear, and transfer payment structure is not reasonable. For example, the size and the proportion of general transfer payment are too small. Although the general transfer payments of many project, but some projects has weakening equalization function; special transfer payments project Settings is not reasonable and so on. So in order to give full play to the role of the transfer payment, to narrow financial gap between regions, to realize regional equalization of basic public service, fiscal transfer payment structure has to be optimized urgently.In this article,with the method of literature reading and reference, detailed analysis and research the concept of fiscal transfer payment, patterns, and classification. There are Fiscal decentralization theory、Public goods theory、The dual economic structure theory、Basic public services equalization theory as this paper studies the theoretical basis. Secondly analyze the problems in the current transfer payment structure. Chart of data through a detailed analysis of China’s transfer payment structure of general transfer payments and special transfer payments and the structure of the tax rebates. Then to analyze the problems existing in the structure of fiscal transfer payment in China and to reference model in Australia, the United States and Japan’s transfer payment structure of relevant experience. At last this article put forward suggestions to optimize the structure of the fiscal transfer payment in China.Our country should establish general transfer payments as the main body structure of transfer payment. We should reduce the tax rebates and special transfer payments, standardize the special transfer payments and establish a performance evaluation of fiscal transfer payment laws, regulations and mechanism.