Reform of Intergovernmental Transfers System Based on the Analysis of Equalization of Public Services

Since tax-sharing reform of China in 1994,intergovernmental transfer has played its proper role,but it should be further reformed.Based on the requirements of equalization of public services,the function of transfer payment to achieve horizontal fiscal balance should be strengthened,simultaneously the transfer system reform should be taken as a part in the whole reform to standardize intergovernmental fiscal relations;The transfer payment should be classified based on the nature,one is general transfer to be used in solving intergovernmental longitudinal and transverse gap in financial power,another is the special appropriation as a way to combat the externalities.