A Study On The Financial Equalization Effect Of Intergovernmental Transfer Payment In Yunnan Province

Since 1978, the Third Plenum of the 13 th Communist Party affirmed that the achievements from its revolutionary policies has allowed the world to see China’s social, cultural, technological, economic, political advancement. But with that being said, there is a great imbalance as many parts of China are developing more than 10%of the annual average high-speed as compared to the developing regions of the same country. There are many reasons for this phenomenon. Geographic conditions, natural resources, population conditions, educational resources, capital strength as well as other factors have created such regional development imbalances. As a result, the primary consequence of this imbalance is caused by the development of different regions. Although the existence of differences among regions is due to a considerable number of reasonable factors as mentioned above, I believe that there are viable solutions unless we have the provision and protection that the Government offers as well as spirit of responsibility, it will be difficult to achieve the conditions of its administrative functions.Prior to 2012, China has been the focus of rapid economic development. In the report of the Eighteenth National Congress party in 2012, the goal of this direction, "the equalization of basic public services," was first mentioned. The goal was to improve the overall quality of life of the people. The report also pointed out the need to achieve this goal, "the equalization of basic public services in general" as a basis.The report proposed equalization means are to proceed into the public service as one of the key objectives of socialist construction. However, decades of political reform in the impending fiscal decentralization movement has continued to receive administrative rights. This could be seen from the transfer payment system which regulates the development of differences in different regions of our country has become our country mode of control. This is done because powers are being delegated to tighten, reducing the increase means that income and expenditure. Thus,many of the local governments are having trouble financially in making ends meet at this stage. The purpose of the transfer of direct payment system is the equalization of public services depend on the government to re-allocate in terms of macro-control functions to achieve different places.Therefore, the public service has strived to achieve balance in different regions of the province by controlling the cross-regional differences in regional and rural development, economic, social and many other aspects. It also must be noted that the push for rural development is inseparable in this case. This article looks at the fiscal equalization payment via Yunnan Province, the effect of inter- governmental transfer payments and the analysis of future proposals, the confusion and problems related to the current system, as well as the results of the optimization system.In the first chapter of the introduction, this paper will explain the background and significance of this research paper topics, followed by a large number of major domestic and international perspectives and arguments related literature were described and summarized, and then forming a comprehensive description of the above the research ideas and research methods and theories used, the last hope to explore the innovation and subsequent research paper on the research can make or circumvent the imperfections; the second part reviews the intergovernmental transfers and fiscal equalization theory for this research laid the theoretical foundation; and the third part is the empirical analysis of the article, first described the status quo between the Yunnan provincial government transfer payments, and from financial equalization of basic public services and to analyze the two angles between the Yunnan provincial government transfer payments effects of fiscal equalization, which is the innovation of the paper, taking into account the financial aspects and basic public services, to more fully elucidate fiscal equalization. The fourth part based on empirical results and combine the Yunnan provincial government transfer payments between the status quo of intergovernmental transfers in fiscal equalization Problems; the last part to improve the transfer payment system to make certain policies and proposals.