IDEAS home Printed from
   My bibliography  Save this article

On Establishing a Transfer Payment System in China


  • Wang Heshan


The transfer payment system has long existed in China. In the past, transfer payment assumed various forms, including institutional subsidies or general subsidies [>i>tizhi buzhu>/i>], special appropriations [>i>zhuanxiang buzhu>/i>], emergency subsidies [>i>teshu buzhu>/i>], institutional remittances [>i>tizhi shangjie>/i>], and special remittances [>i>zhuanxiang shangjie>/i>], all of which were used to equilibrate budgetary margins among levels of government. A more formal use of "transfer payment" as a standard financial practice in China has, however, only been discussed in recent years. The new fiscal system implemented in 1994 allowed the central government to concentrate more revenue resources, but expenditure management has not been revised and still follows the same operating pattern as under the old fiscal system. Furthermore, regional disparities in economic development in the past years have grown, and financial difficulties in poor areas have worsened. Under these circumstances, the establishment of a transfer payment was put onto the agenda of the central and local financial management institutions. How to standardize the transfer payment system in China is seen, by all levels of government, as an important solution to financial difficulties and disequilibrium in distribution.

Suggested Citation

  • Wang Heshan, 1996. "On Establishing a Transfer Payment System in China," Chinese Economy, Taylor & Francis Journals, vol. 29(4), pages 38-41, July.
  • Handle: RePEc:mes:chinec:v:29:y:1996:i:4:p:38-41

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:29:y:1996:i:4:p:38-41. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.