Research About The Impact Of Fiscal Transfer Payments On Prefecture-level Governments' Fiscal Efforts In Jilin Province

Accelerating the establishment of a modern financial system is an important deployment made by China on the basis of summing up the experience of economic development and the construction of the financial system,and in combination with the national development strategy requirements of the new era.As a key institutional means to regulate regional financial resources,promote regional coordinated development,and have both political and economic functions,the reform and improvement of the financial transfer payments system is part of the task of establishing a modern financial system and a right meaning to accelerate the transformation of government functions,and deepen the reform of the financial system.Due to the special nature of the transfer payments,its impact on the fiscal behavior of local governments has become increasingly prominent with the expansion of the scale of funds.Examining the effectiveness and scientificity of the transfer payments system from the perspective of local government financial efforts,adjust the scale and structure of transfer payments in a timely manner,improve the use of transfer payment funds,improve the standardization and rule of law in fund operations,and effectively stimulate local government financial enthusiasm to accelerate the pace of China's modern financial system.This article takes Jilin Province as the research object,and based on the panel data of nine prefecture-level governments in the province from 2001 to 2017,based on theoretical inferences and empirical tests,it comprehensively analyzes the impact of financial transfer payments of Jilin Province on the fiscal efforts of prefecture-level governments.The structure and main content of this article: Chapter One is the introduction,which elaborates the research background and significance of this article,and summarizes the current research status and results at home and abroad;Chapter Two introduces the main related concepts involved in the research process and related basic theories;Chapter Three analyzes the financial transfer payments system of Jilin Province and the status of fiscal efforts of local governments;Chapter Four studies and explores the impact mechanism of financial transfer payments on government fiscal efforts;Chapter Five builds models based on theoretical research and using relevant data of Jilin Province for empirical testing and analysis;Chapter Six summarizes the conclusions and puts forward relevant policy recommendations based on this.Based on analysis and testing,the article draws the following conclusions:(1)The financial transfer payments of Jilin Province have suppressed the enthusiasm of prefecture-level government organizations for fiscal revenue as a whole;2)There is a significant negative correlation between tax rebates and the fiscal efforts of local governments,that is,tax rebates have also reduced government fiscal efforts to a certain extent;(3)the general transfer payments and special transfer payments to local governments fiscal efforts have produced significant positive incentive effects,and the incentive effects of general transfer payments are even more significant.According to the research conclusions,the following policy suggestions are proposed in this article:(1)Optimize the structure of fiscal transfer payments,adjust the total amount of transfer payments and the scale of various funds,and build a vertical transfer payments system that meets the provincial conditions of Jilin Province and has local characteristics;(2)Improve the efficiency of transfer payments,introduce a performance evaluation mechanism,strengthen the supervision and evaluation of the use of transfer payment funds,and use the evaluation results as an important reference for local funding arrangements and governmental performance evaluation;(3)Introduce the incentive mechanism,strengthen the top-level design of the transfer payment system,and ensure the positive financial incentive of the transfer payment with the effective reward and punishment mechanism;(4)Accelerate legislation on transfer payments management and use,regulate the declaration and management of government transfer payments in a legal form,and hold legal responsibility for acts that violate relevant laws and regulations;(5)Explore horizontal fiscal transfer payments model,institutionalize and standardize the existing Chinese characteristics such as "counterpart support" to balance local financial resources and promote common development in the region.At the same time,the power-responsibility relationship should be reasonably divided to ensure inter-government rights and financial power equivalence,creating a good institutional basis for the establishment of a horizontal fiscal transfer payments model.