Fiscal Payment Transfer:The Horizontal Financial Equalization and Its Effects

The degree of the horizontal financial resource equalization arising from fiscal payment transfer will affect the fiscal capacity equalization of different regions in the nation,which in turn,will influence the fulfillment of the local public service equalization.The results of this paper indicate that from the view of the total effects the payment transfer has certain effect of horizontal financial resource equalization,but there exist regional financial resource differences.From the view of the effect of sub-transfer payment,the general transfer payments has the strongest effect of financial equalization,followed by the special transfer payments,the tax rebates worst.Therefore,in order to improve the public service equalization of different regions in the nation,the degree of the horizontal financial resource equalization can be realized by adjusting the regional distribution pattern of the payment transfer and by establishing equalized transfer payment system.