A Study On The Optimization Of Fiscal Transfer Payment System From Perspective Of Shandong Province

The eighteenth meeting of the party propose to accelerate the reform of fiscal and taxationsystem, make the revenue rights and expenditure rights matchable between the central andlocal regions, improve the equalization of public service and the construction of publicfinancial system. A fundamental problem of national governance encountering all over theworld is to realize the equalization of public services, which is the basic rights of a citizen aswell as the main objective of public finance. It’s impossible for any country in the world toachieve the absolute equalization of public services, but its unequal degree should becontrolled in a certain range, otherwise it will violate the fundamental goal of achievingcommon prosperity. Solve the problem needs to play the role of public finance with areasonable interests-balance system, which also requires to standardize the economic behaviorof each microscopic economic subject. At present, the central government increases publicexpenditure and expands the scale of transfer payment in order to fundamentally solveregional financial disparities in China as well as make public services more equalization. Butaccording to survey, there are defects in financial transfer payment system of our province,city, autonomous regions, having an impact on the exertion of its function. For instance, thetransfer payment system under the provincial level in China has not been perfect yet and theeffect of provincial financial transfer payment to county-level government also is not obvious,which gradually widen regional financial disparities. Therefore, we must analyze the existingissue of transfer payment system in China and put forward methods of solving the problem,which play a significant role for the formation of a new type of transfer payment system andadvocating a "harmonious society" in China.We can solve regional financial disparities and make public service equalization frommulti-angle. In light of fundamental theory of financial transfer payment, referring to lots ofrelevant literature and successful experience of financial transfer reform in the developedcountries, this paper empirically analyzes financial income and expenditure status underShandong province and government transfer payment system, puts forward valuable theories and suggestions of perfecting public financial reform.