Fiscal Policy Research Transfer Expenditures Income Distribution Gap Promotion

With the further development of reform and opening up, China’s socialist marketeconomy has made great achievements，but at the same time, the contradiction betweenefficiency and fairness appeared increasingly, and the income gap has become greater andgreater. The party’s18th national congress not only pointed that the income need beingdoubled, but also proposed that the income gap need being narrowed, and we should alsoadjust the distribution of national income and increase the redistribution of adjustableintensity, so that all the people can acquire the fruits of development more and more fair.As an adjustment method of income distribution gap, fiscal policy is also one of themeans to regulate the income distribution gap and straighten out income distributionrelations, and it is also the most important adjustment tool. Especially the fiscal transferexpenditure, it is the government’s unilateral and free funds transfer and one of theincome distribution policy tools to achieve the goal of social justice, and it should have asignificant contribution to the field of income distribution adjustment. However, from thecurrent status of China’s income distribution point of view, fiscal transfer expenditure didnot play its due effect on the trend of narrowing income gap. Therefore, analyze andresearch China’s fiscal expenditure and income gap metastatic and analyze the relationshipbetween the two will have great practical significance.With historical analysis, experience summary and data analysis, this article researchedthe status of transfer expenditure and the income gap, combined the transfer expendituredata over the years, and throughout urban and rural residents income status and thenfurther analyzed the effect of transfer expenditure on the income gap. The study found thatthe fiscal transfer expenditure didn’t play a good role in narrowing residents’ incomedistribution gap. And then it analyzed the problems of financial transfer expenditureproblems in China and proposed some improving policy recommendations on the basis ofsuccessful experience of western countries.