JIA Xiaojun，etc：Block Grants,Local Expenditures and Equalization of Basic Public Services——An Implication for the Reform of Transfer Payments

Abstract：The basic public services are mostly provided by local governments while the central government funds local governments by transfer payments Local governments have strong expenditure preferences on investment while paying less attention to the expenditure of livelihood of local citizens Through theoretical and empirical analysis,this paper points out that the block grant can stimulate local expenditures on public services and help the realization of equalization of basic public services The reform of specific grants in Zhejiang province proves the feasibility of the conclusion This paper further provides some suggestions on the reform of intergovernmental fiscal transfers.

keywords:Special Appropriation  Funds ,Block Grant,  Purpose  Transfer ,Equalization  of Basic Public Services

source:Finance & Trade Economics ,No.4,2015