Research On The Impact Of Fiscal Transfer Payments On The Income Gap Between Urban And Rural Residents

Since the financial transfer payment system was formally established in 1994,it has played an important role in balancing regional financial gaps,promoting the coordinated development of regions and achieving equalization of basic public services.At the same time,as an important source of local government revenue,fiscal transfer payment also has an important impact on improving the income level of urban and rural residents.Under the background that the income gap between urban and rural residents is still large,we should pay attention to the possible impact of fiscal transfer payment on the income gap between urban and rural residents.Based on the data of 28 provinces in China from 2009 to 2018,this paper Using theoretical and empirical methods to analyzes the impact of fiscal transfer payment on the income gap between urban and rural residents.Due to the specific effect of fiscal transfer payment on adjusting the income gap between urban and rural residents,it will be affected by many factors such as different regional economic development level,urbanization rate and local government financial resources,etc.,so this paper analyzes the relationship between fiscal transfer payment and the income gap between urban and rural residents in different regions,which are divided into Eastern,Central and Western regions.The conclusions are as follows: because the central government's transfer payment funds are inclined to the central and western regions in distribution,the central and western regions get much higher financial transfer payment funds than the eastern regions,and the income gap between urban and rural residents in the eastern and western regions is large,and the income gap between urban and rural residents in the central region is the smallest among the three regions.so the fiscal transfer payment has the best adjustment effect on the income gap between urban and rural residents in the central region.For each 1% increase in fiscal transfer payment,the income gap between urban and rural residents in the central region will be reduced by about 23.7%;for the eastern region,the effect of fiscal transfer payments on theadjustment of the income gap between urban and rural residents was second,with each 1% increase in fiscal transfer payments,the income gap between urban and rural residents narrowed by 15.54%;while for the western region,the role of fiscal transfer payment in adjusting the income gap between urban and rural residents is the smallest and not significant,and the income of urban and rural residents will only be reduced by 1.22% for each 1% increase of fiscal transfer payment.This is mainly due to the low financial resources of the local governments in the western region.The financial transfer payment funds are more used to make up for the daily expenses,urban infrastructure construction and support the economic development of the region.There are less subsidies for rural and rural residents.Therefore,the adjustment effect of financial transfer payment on the income gap between urban and rural residents in the western region is not significant.Based on the above conclusions and some problems in fiscal transfer payments,this paper puts forward the following suggestions.First,on the basis of ensuring equalization of financial resources,appropriately balance the scale of fiscal transfer payments between regions;Second,stabilize the proportion of special transfer payments and increase the proportion of transfer payments related to agriculture and rural areas;Third,the local government should distribute the general transfer payment according to its own situation;fourth,standardize the transfer payment funds and improve the efficiency of the transfer payment;fifth,improve the level of economic development and narrow the economic development gap between regions.