The Impact Of Provincial Transfer Payment On Equalization Of Basic Public Services

As an important means of government fiscal regulation,transfer payment is an important purpose to promote the equalization of public services.In the operation of the government,when various factors lead to financial inefficiency and unfairness,it will cause financial gap,thus causing financial pressure and affecting the function.At this point,transfer payments can play a role in promoting the equalization of financial resources among local governments,so as to promote the equalization of basic public services in all regions.In view of this,my study will explore the impact of transfer payment on equalization of basic public services,analyzes the reasons and makes suggestions by analyzing the current situation of transfer payment and equalization of basic public services in 11 cities of Shanxi Province.First of all,the economic development level,financial level and public service input status of prefecture-level cities in Shanxi Province were analyzed.Then,the comprehensive evaluation method was adopted to measure the basic public service supply level of prefecture-level cities in Shanxi Province by selecting 16 indicators from five aspects: basic education,medical and health care,social security,cultural tourism and environmental protection,so as to construct the basic public service index.Secondly,through correlation regression analysis and hierarchical linear regression,the transfer payment and its three-word dimension and the basic public service equalization index and its five sub-dimension effects are analyzed empirically.The results show that:(1)The impact of per capital transfer payment income on the equalization of basic public services in Shanxi Province is not universal,but mainly promotes the equalization degree in the medical and health field.(2)The transfer payment under the province can narrow the regional financial differences and promote financial equalization.However,the difference between the equalization effect of different transfer payments on basic public services is obvious.General transfer payment inhibits the equalization of social security to a certain extent.Special transfer payments can promote the equalization of basic public services between regions,while tax rebates can inhibit the equalization to some extent.(3)Unbalanced regional development is also the cause of unbalanced supply of basic public services between regions.Finally,based on the research results,this paper puts forward some policy suggestions to reasonably divide the powers and expenditure responsibilities between different levels of governments,improve the transfer payment system,guide local governments to change their development concepts,and encourage local governments to develop themselves.