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THE EQUALIZATION EFFECTS OF DIFFERENT TYPES OF INTERGOVERNMENTAL TRANSFERS IN CHINA

Jia Xiao-ju

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Abstract

Applying the Gini coefficient decomposition method,this paper studies the transfer equalization effects.Calculated results show that both the general transfer and specific-purpose transfer tend to provide stronger support to areas with weaker fiscal capacity and thus bring about equalization effects.The strength of general transfer is heavier than that of specific-purpose transfer.In the numerous subprojects of specific-purpose transfers,transfer payment in rural tax and fee reform has the strongest support on poor areas,with general transfer payment in education transferred from specific-purpose transfers in 2009 taking the second place and then the subsidy assuring basic fiscal capacity and the transfers in wage adjustment.Due to its great scale,equalization transfer has the strongest equalization effects out of all the general transfer payments.

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What this paper is about

Applying the Gini coefficient decomposition method,this paper studies the transfer equalization effects.Calculated results show that both the general transfer and specific-purpose transfer tend to provide stronger support to areas with weaker fiscal capacity and thus bring about equalization effects.The strength of general transfer is heavier than that of specific-purpose transfer.In the numerous subprojects of specific-purpose transfers,transfer payment in rural tax and fee reform has the strongest support on poor areas,with general transfer payment in education transferred from specific-purpose transfers in 2009 taking the second place and then the subsidy assuring basic fiscal capacity and the transfers in wage adjustment.Due to its great scale,equalization transfer has the strongest equalization effects out of all the general transfer payments.

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Available abstract

Applying the Gini coefficient decomposition method,this paper studies the transfer equalization effects.Calculated results show that both the general transfer and specific-purpose transfer tend to provide stronger support to areas with weaker fiscal capacity and thus bring about equalization effects.The strength of general transfer is heavier than that of specific-purpose transfer.In the numerous subprojects of specific-purpose transfers,transfer payment in rural tax and fee reform has the strongest support on poor areas,with general transfer payment in education transferred from specific-purpose transfers in 2009 taking the second place and then the subsidy assuring basic fiscal capacity and the transfers in wage adjustment.Due to its great scale,equalization transfer has the strongest equalization effects out of all the general transfer payments.

Key concepts: Equalization (audio), Transfer payment, Subsidy, Transfer (computing), Economics, Wage, China, Payment

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