Study On The Evolution And Reformation Of China’s Intergovernmental Vertical Transfer Payments System Since The Reform And Opening Up

China’s intergovernmental vertical transfer payments system has experienced several adjustments since the reform and opening up, and the goal of equal basic public services is put forward, gradually, having formed the nowadays pattern.After analyzing the details, features and effects of transfer payments system in different stages including classified contract period, fiscal responsibility period, preliminary stage of tax distribution system and the period after income tax sharing reform, we can perceive the evolution of s intergovernmental vertical transfer payments system clearly and discover its developments law. Especially, after the income tax sharing reform, China’s intergovernmental vertical transfer payments system has become improved, its contents become increasingly rich, while the transfer payments system has relieved local governments’pressure availably. But, some defects exist in the achievement of transfer payments system goal, these defects are reflected in the following aspects:the goal of transfer payments system is not definite; the standard of allocating funds is not scientific enough; the structure of transfer payments is not reasonable; the restriction mechanism is not sound. The special transfer payments system is least standardized among all kinds of transfer payments. When the local governments strain to get the transfer payment projects, there are unfair competition phenomenon. The paper analyzes an incentive problem about special transfer payment under the framework of principal-agent theory, the central government need to follow the principle of efficiency first and use the method of rewards and punishment. Finally, based on foreign successful transfer payments system and combining these problems existing in China’transfer payments, this paper propose some improved measures:dividing the fiscal power and administrative authority between the central government and the local governments clearly; optimizing and adjusting the structure of transfer payments; designing the standard of allocating funds reasonably; strengthening the budget system construction of transfer payments funds; propelling the supporting policies reform of transfer payments actively.