A Research On The Impact Of Fiscal Transfer Payment On The Efficiency Of Basic Public Service Supply Of Counties

As China's basic public services are major suppliers, the county government received substantial and stable financial transfer payments from higher levels of government, the size of these funds and the relatively large proportion of fiscal revenue in the county government, the county has become level governments to provide basic public services the main source of funding. So the fiscal transfers to the county government basic public service delivery efficiency will produce what kind of impact has become a problem worthy of study.In this paper, a theoretical model is derived by the local government basic public services for the supply of the fiscal transfers and special generally transfer payments sensitivity, namely local government basic public services output volume and input volume ratio as a measure of efficiency variable supply of basic public services, by seeking the equation variable dependent variable (the amount of basic public service output) the partial derivatives of the independent variable (general transfer payments and special transfer payments) to characterize the sensitivity of variables, and then draw two kinds of basic public transfer payments service supply efficiency impact. In this study, based on the use of agency theory, proof of basic public services in the real needs of area residents has not been fully displayed and expression case, the theoretical model is still able to obtain equilibrium.In order to clearly demonstrate our different areas of the fiscal transfers on the supply of basic public services at the county level of efficiency, this paper selects national provincial level samples and the regional economy more developed eastern part of Guangdong Province, in the central province of underdeveloped economy and a major agricultural province of Anhui in the Western Region relatively backward three provinces of Yunnan, the use of provincial level data and three provinces 2004--2014 on the panel data county government revenue and expenditure of the empirical research and comparative analysis. The first is the (divided into general transfer payments and special fiscally transfers and other selected control variables affect the structure of county government expenditure on basic public services, the sensitivity analysis on financial transfer payment, measurement results show that indeed between significant increases relevance, namely financial transfer payment does cause sample provinces county government basic public services expenditure structure changes, but the impact caused by two types of transfer payments is not the same; on this basis, this paper, random frontier analysis (SFA) method to further analyze the impact of the financial transfer payment scale and proportion of fiscal revenue accounted for factors such as provincial level and Yunnan, Guangdong and Anhui provinces county government basic public service delivery efficiency.The main conclusions are:(1) The importance of special fiscally transfers to underdeveloped areas of county government basic public service delivery efficiency is much greater than in economically developed areas, and general transfer payments to better promote economically developed areas county government basic public services to enhance the efficiency. Therefore, when we move in the reform of the transfer payment from the exchequer in general to enhance the proportion of general transfer payments, it should also increase transfer payments for special Western Areas proportion. (2) General transfer payments and special fiscal transfers to provinces county government basic public services affect the behavior of supply and supply efficiency of the existence of regional differences, the impact on the overall financial expenditure efficiency is also different. (3) Fiscal decentralization affect the behavior of supply and supply efficiency of county government basic public services to the existence of obvious regional differences, and this difference in regional economically development level and income level of decentralization and the role of the regions are not necessarily and direct contact, but property rights in accordance with certain principles of taxation select appropriate delegated powers on to have a certain income, such an approach is indeed its necessity, to a certain extent, can reduce the financial transfer payments in the course of local government behavior distorted use of funds and efficiency losses. (4) As an important control variable, increase administrative expenditure and economic development of the county government spending to improve the efficiency of the supply of basic public services there is a regional difference. Anhui, Guangdong and Yunnan provinces compared to the increased administrative and economic construction expenditure would facilitate the supply of basic public services of county government efficiency, and in Yunnan Province, the empirical results showed a significant negative impact. (5) From the perspective of system operation and implementation mechanisms speaking, the principal of basic public services (higher levels of government) and the agent (lower levels of government), if it can be formed between the supply side (governments) and the demand side (area residents) have a good incentive and restraint mechanisms of the agency, the disbursement of funds to improve basic public services in the financial transfer efficiency of the supply side will play an important role.Major policy recommendations as:(1) Further reform of the financial system, improvement of the transfer payment system and policies, improvement and standardize the county government basic public services supply behavior and improve supply efficiency. (2) To build and perfect the mechanism-based agency mechanism system, motivation, supervision and restraint county government basic public services supply behavior, increase fiscal transfers funds using efficiency. (3) Build a clear hierarchy of the legal system as well as supervision and anti-corruption mechanisms to strengthen supervision on fiscal transfers' funds in the distribution, use and post-performance evaluation of the whole process.