Analysis on the Equalization Effect of Fiscal Transfer Payment in China

with the data of each province between 2000～2005,by measuring the financial disparity among different provinces by the coefficient of variation,the paper makes the empirical analysis and test on the equalization effect of fiscal transfer payment in China.The result of the empirical analysis believes that fiscal transfer payment of China plays a certain role of narrowing the financial disparity,but it also has some problems,for example,the preparation and presentation of the budget and budget performance is incomplete,the fiscal transfer payment detaches the NPC's supervision,the tax return deviates from the equalization policy aims,the special transfer payment cannot exert its effort and so on.So we should compress the tax return,define the basic public service in range of equalization transfer payments,perfect the legal system of fiscal transfer payment,form the unified,standard and transparent fiscal transfer payment system,improve the scale and rate of the general transfer payment,thus increase the input of public service field and promote the equalization of the basic public service.