A Study On The Inter - Governmental Financial Transfer Payment System In Yunnan Province

Financial transfer payment system had established from the central government to provincial government since the tax reform in1994. According to the theory of financial transfer payment, financial transfer payment system is an important part of intergovernmental relations. The main effects are on macro-economy regulation, externalities correcting of public goods, filling the funding gap of some local governments, promoting fiscal equalization in different area, helping to achieve the aim of public service equalization. Yunnan province had established financial transfer payment system since the tax reformed. The system plays an important role in promoting the implementation of major policies at the provincial level, developing local economy and social development, enhancing local government finances, accelerating the equalization of local public service.Financial transfer payment system also revealed some problems in the running process. It restricted the system to pay its due role in promoting equalization. The central government and Yunnan provincial government have made some adjustments to improve the system,but only on the working mechanism, not involving changes in the existing systemic framework. Some contents such as tax return, grants etc which were retained to reduce the resistance to the tax reform still exist after20year since the tax reform. Special transfer payments increase rapidly in size and numbers of projects,which weak the effect on equalization of general transfer payments. The root of these problems could be found in the existing system. Therefore, the reform and improvement of the financial transfer payments system is imminent.A series of reform arrangements were carried out at the third plenary session of the18th central committee of the communist party of china. The reform of the taxation system is put in a very important position. The reform and improvement of financial transfer payments system is one of the key part of the whole taxation system reform. At present, many domestic scholars have conducted the researches to the financial transfer payments system. The main research object is the central transfer payments to local. Relatively few studies of provincial financial transfer payments were conducted.In practice, the National People’s Congress has passed the "budget law" of the people’s Republic of China on the amendment. There are new requirements for the financial transfer payments system.According to the general idea of central taxation system reform, Yunnan province have explored a lot on the provincial financial transfer payments system and accumulated experience for the next step of reform. This thesis is a operation research on the current financial transfer payment system in Yunnan province. It intends to express the author’s understanding about the Yunnan’s financial transfer payment system. Some thoughts and suggestions were given in order to make contribution to Yunnan’s tax system reform.According to the actual situation, this thesis proposed the aim,next step,the principle,path selection,and guarantee mechanism of the provincial financial transfer payment system reform by applying the theory of public finance, the theory of local public goods, the equalization of basic public service theory which discusses the important role of transfer payment in the political,economic,and social development around Yunnan. The full text is divided into five parts. The first part introduced the background and significance of the thesis topic. The second part introduced the domestic and overseas research situation of transfer payment of transfer payments which included some basic theories and concepts of transfer payments.The third part focused on analyzing the effects of transfer payment system. The fourth part is about the empirical study of Yunnan provincial financial transfer payment system. It showed the the system had played positive role on local development. But it would need reform to adapt to the current development needs. The fifth part put some forward thoughts and suggestions to reform the provincial financial payment system.