A Study On Effect Of Transfer Payments To Promote The Equalization Of Public Services

Since the reform and opening up, China’s overall income level and distribution pattern has changed greatly. The principle of "giving priority to efficiency and Consideration to Fairness" has quietly changed. The government and the public gradually enhance the understanding of the fair, but there are large differences of our public services among different regions, and there are large differences of public service that every citizen can enjoy. This situation may hinder China’s social stability and sustainable economic development. In recent years, for balancing regional financial equilibrium and promotion of equalization of public services, the government constantly increases the scale of transfer payments, especially the funding of the central and western regions. However, the defects of the current transfer payment system have been affecting their play equal role. The effect of transfer payments to promote the equalization of public services is worth the time to concentrate on study and resolve.This article first analyzes the current transfer payment system and non-equal status and trends of public services, and then analyzes the effect that transfer payment system do to the equalization of public services by making a model. After that, we have a conclusion that transfer payments have promoted the equalization of the central and western regions; but did not play the same role across the country and the eastern region. So we need to standardize and improve the existing system of transfer payment system, adhere to economic development, strengthen the management of extra budgetary funds, strengthen the management of fiscal decentralization and encourage diversification in the supply of public services, then the goal of equalization of public services can be realized sooner.