Political Logic and Mode Choice for China's Horizontal Fiscal Transfer Payment System

The horizontal fiscal transfer payment system is a cutting-edge issue in the fields of China's basic public services equalization and fiscal system reform,and a complex problem as well. The decision-making of horizontal fiscal transfer payment system is a complex process of policy interaction and coordination,which is to achieve some certain political aims by central government and supporting provinces under the existing political system and decision-making institutional frameworks. This political logic relation is the key issue of the decision-making in the horizontal fiscal transfer payment system.A clear understanding of the essence has a decisive significance for choosing the mode of the horizontal fiscal transfer payment system.The mode for China's horizontal fiscal transfer payment system should be a satisfying mode,rather than an optimal one.A satisfying mode not only helps to reduce the decision-making resistance of the horizontal fiscal transfer payment system, but also helps to establish the public finance system with Chinese characteristics,promote the equalization of basic public services,and promote the balanced development of economic growth and social equity.