A Study Of The Equalization Effect Of Transfer Payment

China began to implement the financial management system,since the tax reform in 1994.As a supporting measures,inter-governmental transfer payment system was established.The fundamental aim of transfer payment system is to realize regional equalization of public service which means the same level of public products and services in the nationwide.Although,the supply of the basic public services increased significantly with the rapid development of economic and enhancement of the comprehensive national strength after the reform and opening up,the economic gap between urban and rural and regional disparity are increasing.Meanwhile,the goals of The transformation of the pattern of economic development in China,Implement the scientific concept of development and the construction of a well-off society are restricted.The condition of realizing equal basic public services is local government financial size.In this paper,we will judge inter-governmental transfer payment financial equalization effect by comparing the change of local government financial gap between before and after the transfer payment.In this paper,we analyzed of the necessity of implement financial equalization.The transfer payment of China in 2014,for example,with the theory of the Public product theory,fiscal decentralization,welfare economics,fair and efficiency and fiscal balance as support,according to the existing statistical data and literature data.And,we analyzed financial gap of the provinces in China between before and after the transfer by using the gini coefficient.we analyzed the cause of financial gap from the Angle of expenditure structure by using SPSS statistical software for factor analysis and cluster analysis,found that found that the size of the transfer payment effect not only related to the scale of transfer payment,with the reliance of the transfer payment of provinces and cities,and their respective expenditure structure highly correlated,it is concluded that China's transfer payment law system is not sound,unreasonable allocation of funds and supervision system is not perfect.On this basis,through the foreign experience for reference,the construction of legal system,capital allocation,perfecting the supervision system and transfer payment model to discuss four aspects are proposed.Innovation point of this article is the gini coefficient is used to measure the financial gap.At the same time,using the factor analysis and cluster analysis method from the expenditure structure and degree of dependence transfer to explain the causes of the financial gap.At last,using resources equalization model estimates the amount of transfer payment in China standard,and puts forward the relevant optimization advice.