Research On The Impact Of Fiscal Transfer Payment On Local Tax Effort And Fiscal Expenditure Scale

The tax sharing reform has re-established the central and local fiscal and taxation relations,and clarified the types of taxes that local governments can enjoy and collect.In order to achieve equalization of public services and make up for the imbalance of financial resources between regions,the central government gradually improved the transfer payment system.The report of the 19 th National Congress proposed to continue to optimize the transfer payment system and strengthen the guarantee of transfer payments to the central government's major deployment decisions.Studying the impact of fiscal transfer payments on tax efforts and fiscal expenditures can provide a reference for local government financial stability and improvement of fiscal transfer payment systems.The paper introduces fiscal transfer payment into the measurement model of local tax efforts and fiscal expenditures.Based on the panel data of 30 provinces and cities nationwide in 2000-2017,the fixed effects and random effects models are used to study fiscal transfer payments to the impact of local tax efforts and the size of fiscal spending.The paper is based on the domestic and foreign literature on the relationship between transfer payments and local revenues and expenditures,construct the theoretical transmission mechanism of transfer payment to local tax efforts and fiscal expenditures,on the total amount,study the impact of fiscal transfer payments on local government tax efforts and fiscal expenditure scale,study the response of national and regional revenues and expenditures to total transfer payments.The basic structure of the thesis research : the first chapter introduces the background and significance of the topic,the literature review at home and abroad,the basic framework and so on;the second chapter outlines the theoretical basis of fiscal transfer payments,tax efforts and fiscal expenditures;the third chapter analyzes the current situation and problems of fiscal transfer payments,tax efforts and fiscal expenditures;the fourth chapter constructs a theoretical model of fiscal transfer payments for local tax efforts and fiscal expenditures;the fifth chapter uses the fixed effects and random effects model to conduct empirical analysis and draw relevant conclusions;the sixth chapter presents policy recommendations.Based on the analysis of current situation and empirical analysis,the paper draws the following conclusions: First,fiscal transfer payments have a positive effect on thescale of local fiscal expenditures,and there are differences in the degree of impact on different regions;Second,fiscal transfer payments have a positive impact on local tax efforts,Comparing the total amount of transfer payments with conditional transfer payments,the substitution effect of conditional transfer payments plays a leading role,and the degree of response varies from region to region,and differences in the degree of response in different regions.Based on the empirical and current analysis results,the policy recommendations for improving the transfer payment system are proposed.