The Study Of Optimization Of Chinese County’s Finance Transfer-payment System

The county government,as a political power of grass-roots level,play a decisive role in our country’s economic development and social management. Transfer payment, as a financial assistance between the governments, is transferred from the central government to local government,which is used to coordinate the central government and local government finance, to balance local finance, to relieve the pressure of public expenditures, and to balance the basic public services. In recent years, the expenditure range of China’s county governments expanses, and the local expenditure demand also increases ceaselessly such as in education, health, infrastructure, social security and other aspects,so that county finance rely more and more on transfer payment from high-level government. The problems in the actual operation of transfer payment system were exposed,such as system design is unreasonable, management is not standard. It leads to non-balanced development of the public service capacity. In this paper, based on the classification of financial and public management theory, empirical analysis of China’s county level finance transfer payment system operation situation and existing problems, put forward the countermeasure proposal of system optimization.This paper, based on the theory of classification finance and public management, focus on empirical analysis to Chinese county’s financial-transfer-payment-system operation status and present problems, put forward the countermeasure proposal of system optimization.In this paper, the study object, Changqing district of Jinan city, can represent county level government of China.Changqing district is located in the suburb of Jinan city. It became a distrct from acounty in2001,It is an old county and a new district. It is both the traditional mode of a county, and the urban financial system, which has dual characteristics of "on the consistency of county and on the financing district". This district had a weak economic foundation, undeveloped industry, small scale of the fiscal revenue, heavy financial expenditure task.It depends heavily on financial transfer payment in the system. Through field investigation,this paper collects a lot of government regulations and statistical data.By way of investigating the establishment and development of Changqing district’s transfer payment system, it is found that this system’s formation has profound background of classification-system reform.By analyzing the actual conditions of the system operation, it is found that there are some outstanding problems such as capital scale too large,formula opaque, the project content cross, local supporting pressure big, budgeting not complete and lack of effective supervision etc.These problems have certain representativeness in our county government. By analyzing the fiscal-taxation system and financial management system of Changqing district, this paper found that the problems exposed in operating transfer payment system just reflect that,under the financial grading system, the system and institution,such as government financial distribution, responsibility assigned, and budget management, is lacking.Therefore, we must adjust and improve financial-grading-management system, straighten out the relationship of consistency and property, deepen reform of department budget, regulate transfer payment system, and strengthen the supervision and management, optimize county level financial transfer payment system.