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The Equalization Effects of the Local Government Fiscal Transfer: Theoretical Analyses and Practical Demonstration

Author: ZhongRongHua
Tutor: GuoPing
School: Hunan University
Course: Finance
Keywords: Local government transfer payments Equalization of public services Effect Theoretical analysis Empirical test
CLC: F812.7
Type: Master's thesis
Year: 2005
Downloads: 691
Quote: 1
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Abstract


Since the implementation of the tax sharing system reform in China in 1994 , transfer payments as a tax-sharing is the most important supporting measures , the implementation of the effect size attracted the attention of many scholars . Theoretically transfer payments is the most important way to achieve regional equalization of public services , but from the implementation , there are still many problems , especially local government transfer payments , to some extent, has deviated from the goal of equalization , from the long-term can not see to the establishment of norms of intergovernmental fiscal relations . Therefore , research local government transfer payments equalization effect has important theoretical and practical significance . Case from Hunan Province , local government transfer payments to the overall effect of better play the equalization of public services , and the transfer of breakdown of transfer payments equalization effects vary , including general transfer payments equalization effect is strongest , the central special subsidies volatility , also played the equalization effect equalization effect of the tax return is very poor . First, it is necessary to deepen the reform of the fiscal system , the transformation of government functions improve local government transfer payments ; Second, it is necessary to enhance the ability of transfer payments , increase the scale of transfer payments ; Third, we must improve the transfer payment structure , strengthen the management of special subsidies ; Fourth, we must sound the transfer payment system , improved transfer method of payment; Fifth, we must accelerate the pace of construction of the legal system , and in strict accordance with financial management ; ultimately achieve full play to the effect of the local government transfer payments equalization effect . The main point of this article and innovation , including : (1) more complete discussion of the local government transfer payment relationship with the equalization of public services , pointed out that the main way to achieve equalization transfer payments ; ( 2 ) discusses the role of transfer payments to achieve equalization mechanism , pointing out that the internal design of the transfer payment system and its role in promoting balanced growth of the regional economy have helped to achieve equalization ; ( 3 ) Select the case of the Hunan Province , the empirical analysis of the effect of the size of Hunan Province under the equalization transfer payments and problems and measures help to improve local government transfer payments equalization effect .

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Local financial
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