The Influence Of Local Fiscal Self-sufficiency And Transfer Payment On The Equalization Of Basic Public Services

Since the 21 st century,“the people's livelihood finance”let the public can also share the reform development achievement,and positively resolve the unbalanced development between urban and rural problems,which has become a major goal of China's financial and economic reform in the new era.the theme of“equal basic public services”is proposed under the background of this era.Since 2006,the party in the sixth plenary of sixteen session put forward the concept of“equal basic public services”and in the 12 th five-year plan,State Council put forward the basic public service system,and in 13 th five-year plan,State Council clearly put forward the frame of equal basic public services.There is no denying that the equalization of basic public services under the positive efforts of the party and the government has made great achievements.However,our country in the process of realizing the equalization of basic public services has some problems.Based on the perspective of equal standard,this paper uses normative and empirical analysis and based on the theory of public finance,welfare economics theory and fiscal decentralization theory,according to the relevant data and literature,this paper by empirical analysis analyzes the current of our country's local government financial selfsufficiency,transfer payment and the present situation of the equal basic public services.Firstly,it is found that by the graphic analysis there are some of the phenomena that regional differences and insufficient local financial self-sufficiency.In addition,there are also problems in the transfer payment system in China.Secondly,in this paper,the local government financial self-sufficiency as a threshold variable,using stata software and using the panel data of 31 provincial administrative regions in China from 2007 to 2018 and using fixed effect analysis and panel threshold model analysis to demonstrate from the perspective of local financial self-sufficiency the relationship between central transfer payment and the equalization of basic public services between regions.And it is empirically concluded that there are three threshold effects on the effect of transfer payment to the equalization of basic public services.The promotion shows a trend of strengthening firstly and then weakening with the improvement of local financial self-sufficiency,which shows a trend of inverted U shape.However,at present,most areas in China are short of local financial self-sufficiency and cannot reach the optimal level of equalization of basic public services.Thirdly,on this basis,this paper puts forward suggestions on narrowing regional differences in local finance self-sufficiency,improving local finance self-sufficiency and perfecting transfer payment system.Firstly,the innovation of this paper is theoretical innovation.This paper takes the local financial self-sufficiency level into consideration as a main factor.Local financial self-sufficiency reflects the abundance level of local finance,which will have a disturbing effect on the equalization effect of basic public services,thus affecting the realization of the goal of transfer payment to promote the equalization of basic public services.Secondly,by using the panel data of 31 provincial administrative regions in China from 2007 to 2018,this paper focuses on constructing the panel threshold model.This paper specifically analyzes the relationship among local financial selfsufficiency,transfer payment and equalization of basic public services,and obtains the optimal value of local financial self-sufficiency when transfer payment has the best effect of promoting equalization of basic public services,and this equalization of basic public services is an efficient equalization.Thirdly,from the point of view of perfecting local financial self-sufficiency and transfer payment,suggestions are made for realizing the equalization of basic public services in China.