An Empirical Study On The Impact Of Fiscal Transfer Payments On Local Basic Education Fiscal Expenditures

After the reform of the tax-sharing system,the financial right has been moved up compared with that the responsibility of supply for public service has been put down.The governments of the county and township shoulder the the main responsibility for spending on local basin education.Differences in the level of economic development and financial capacity in all localities make it quite difficult to rely on the county and township finances to invest in basic education,which will inevitably widen the gap between the expenditures on education and public finance across the country.In order to promote adequate and equal local government expenditure on education,the Central Government and the province have implemented basic education transfer payments to localities.The basic education transfer means that the higher level government transfers part of the funds to subordinate government by means of vertical transfer payments so as to ensure that the expenditure on education and education in different regions is substantially equal.Scientific and reasonable basic education is substantially equal.Scientific and reasonable basic education transfer payment policy can solve the problem of education finance shortage in poverty-stricken areas,and can also better narrow the disparity in education expenditure in local education so that local residents can benefit from it.JiangSu Province contains the three major regions:SuNan,SuZhong and SuBei.No matter from the perspective of the whole or the subregion,the counties in JiangSu Province have a big nap in economic ability,financial capability and education needs.Such a gap will inevitably result in the education investment gap between counties which widely depending on the local government's own fiscal investment in local education.Under this background,JiangSu Province needs to fully replenish local education inputs through the transfer of basic education to achieve the goal of equalization of county fiscal spending.In this paper,by means of the coefficient of variation method and BIA method,we know that during year2007-2012,the basic education transfer method in JiangSu Province has a certain equal effect on the local education expenditure.Under such a transfer payment policy,the overall county-level inequality in JiangSu Province has been somewhat improved.The share of basic education spending in impoverished counties also increased and the extent of damage to public spending in that declined.Problems still exist while achievements have been made.For example,the equalization effect of the post-transfer has reduced,the poverty-stricken countries have not become the real beneficiaries of basic public expenditure and the transfer payment policy cannot play the role of horizontal equalization.After that,by means of panel regression,we find that from the perspective of the whole county,the transfer payment of basic education has a negative effect on the investment of local government education.Finally,in view of the problems existing in the transfer payment policy,this article puts forward four suggestions:(1)Continue to increase investment in education in counties in JiangSu Province.(2)Build and improve the factor transfer payment.(3)Improve the supervision system of transfer payment of basic education.(4)Link officials'promotion to education development.