Study On The Intergovernmental Transfer System Below Provincial Government In China

As a very important part of the fiscal system,the transfer payment system plays a decisive role in narrowing the fiscal gap between regions,realizing the equalization of public services,and strengthening local financial resources and other aspects.After the tax-sharing reform,the central government has established and improved the fiscal transfer payment system of the provincial government.Since the provinces have different circumstances,they did not establish a complete system for transfer payments below the provincial level.They are still in continuous practice.At the stage,there is no unified normative system.Due to the differences in natural resources.geographical environment,population density,ethnic customs,and endowments of resource use,provinces can only continue to improve the system and reference to the central-to-local transfer system according to provincial conditions.However,the operation process also revealed some defects and problems,especially the lack of financial resources of the grass-roots government.It is difficult to support large expenditures on social affairs and public construction,and it has a greater dependence on the financial resources of its superiors,coupled with the mismatch between the financial power and the power of affairs,and the effect of the lag of development is often unsatisfactory.The report of the 19th National Congress pointed out establishing a central and local financial relationship with clear power and responsibility,financial coordination and regional equilibrium,which require to achieve the rationalization of transfer between the central government to the local provincial,also make relative balance of the transfer payments below the provinces.This paper starts from the theoretical elaboration of fiscal transfer payments,and makes clear the connotation and type of transfer payments below the provincial level,and the theoretical basis and necessity for the implementation of transfer payments below the province.Because the current research in China is mainly focused on a specific province as an example,and the lack of the overall grasp of the transfer payment below the province,this paper expounds the establishment and development of the transfer payment under the province and the outline of the specific projects.Furthermore it analyses the commonness of the transfer payment under the province and compares the differences between provinces.Secondly,it analyzes the general problems in the operation process of the transfer payment under the province,and learns from the experience of foreign transfer payment to learn the excellent horizontal payment method in Germany.Finally,we propose reform proposals for transfer payments that are in line with China's provincial conditions,in order to better achieve equalization of public services,especially to alleviate the financial difficulties of the current grass-roots government,which is a major guarantee for the coordinated development of the economy.