Since the reform and opening up, China's regional development has been unbalanced, and the coastal areas have taken the lead in achieving the rise by virtue of their unique geographical advantages. The inland areas are relatively lagging behind in development because they are relatively closed. In terms of fiscal revenues and expenditures, the gap between coastal and inland areas is even more pronounced. In 2023, the fiscal revenue of the southeastern coastal areas will be significantly higher than that of the inland areas, especially in the populous provinces such as Sichuan, Henan, Hunan, Hubei, and Chongqing. Therefore, China has implemented a special fiscal transfer payment system. Taking Sichuan Province as an example, as a key province in the rear of the southwest, it has long been the largest beneficiary of transfer payments in the country. For the whole year of 2023, Sichuan received 6860The transfer payment of 800 million yuan ranks first in the country. In 2024, Sichuan will continue to increase its efforts to win more support.
Expansion: It is worth mentioning that the development gap between regions has a large impact on the development pattern of the whole country. Due to the high degree of openness, the coastal areas are more likely to introduce external resources and advanced technologies, so they have developed rapidly and formed a relatively strong economic strength. However, the inland areas are limited by geographical location and transportation conditions, and their development is relatively lagging behind, and their fiscal revenue is correspondingly low. Under the mechanism of fiscal transfer payment, part of the financial resources will be transferred from the developed areas to the less developed regions to promote the balanced development of the whole country. Essentially, it is a means of fiscal adjustment, aiming to achieve optimal allocation of resources and reduce the negative impact of unbalanced regional development.
As a unique policy tool in China's fiscal system, transfer payments have been controversial in recent years. Especially in the context of the current national promotion of "tightening the belt to live", some inland provinces have used a large number of transfer payments for image projects, raising questions about whether this measure rewards laziness and punishes attendance. In this case, however, coastal areas have been affected by reduced transfers. As a matter of fact, the central and western regions have sent a large amount of cheap human and material resources to the coastal areas, and have made important contributions to the rapid development of the coastal areas. Therefore, it is a matter of course to give back to the central and western regions financially.
Expansion: Of course, no policy is absolutely perfect in terms of the overall national interest. There are indeed some drawbacks and problems in the implementation of the transfer payment mechanism, such as excessive reliance on transfer payments in some places, lack of self-development motivation, and lack of transparency and effectiveness in the use of transfer payment funds. This has also led some people to question this system, believing that there is a certain degree of "rewarding laziness and punishing attendance". However, in fact, fiscal transfer payments are set up to achieve balanced development across the country and promote the sustained and healthy development of the country's economy and society. In this process, it is necessary to coordinate with all parties to strengthen management and supervision to ensure the rationality and efficiency of the use of funds, and to avoid abuse or waste of funds.
The central and western regions occupy an important position in China's national development strategy and need the support and concern of the coastal areas. Taking Sichuan Province as an example, as a place with 300,000 square kilometers of the western Sichuan Plateau and the Sichuan-Shaanxi Revolutionary Base Area, infrastructure construction and support require a lot of financial support. While other regions may be unhappy with this, this support and help is due. A similar situation is also occurring in the village of Shibadong in Xiangxi in Hunan, as well as in the Henan and Lianghu regions. Although these regions are still in the top 10 in terms of GDP, they are facing financial constraints. There is a massive outflow of young people from rural areas, and the hollowing out of rural areas is serious, and external support is needed to maintain the stability of the basic market. In addition, a large agricultural province like Henan, which has the largest registered population, should receive a similar level of support as Sichuan to ensure the sustainability of local development.
Expansion: In the process of development in the central and western regions, understanding and support are very important. Financial support for the coastal areas can help the central and western regions accelerate the pace of development and narrow the gap with the coastal areas. However, support for coastal areas also needs to be properly measured and handled carefully to avoid improper use and waste. The central and western regions should also fully understand this and use support to promote the implementation of various development strategies. Only on the basis of full understanding and support can the central and western regions better integrate into the overall development of the whole country and achieve the goal of steady economic growth and improvement of the people's quality of life.
Nationwide, fiscal transfer payments, as an important form of fiscal adjustment, play a role in promoting the balanced development of regional economies. Sooner or later, however, such policies will need to change, and transfers cannot be relied upon forever to adjust regional economic disparities. China should make up for the shortcomings in the development of the central and western regions as soon as possible, increase support for the central and western regions, and let these regions embark on the track of self-development as soon as possible. In the future, we should respect the laws of the market, give better play to the decisive role of the market in the allocation of resources, allow the free flow of resources, and promote the long-term healthy development of the economy and society. At the same time, for some migrant workers in the central and western regions, the ecological relocation policy can be gradually implemented to find more suitable areas for development, so as to achieve a win-win situation of improving the quality of life and environmental protection.
Expansion: Although fiscal transfer payments have alleviated the problem of unbalanced regional economic development to a certain extent, they cannot be relied on as the main means of regulation and control for a long time. China** should gradually reduce transfer payments while guiding the central and western regions to explore their own potential and achieve sustainable self-development. This requires a virtuous cycle of economic independence and self-reliance on external support in the central and western regions. At the same time, it is recommended to strengthen the supervision and review of the use of transfer payment funds to ensure that all expenditures are in line with development planning and policy guidance, and to avoid the abuse or squandering of transfer payments. Only in this way can we more effectively promote the comprehensive economic and social development of the whole country and achieve inter-regional coordination and win-win results.
From the full text, China's fiscal transfer payment system plays an important role in adjusting the imbalance of regional development, but there are also some problems and challenges. In the process of promoting the development of the central and western regions, more understanding, support, and cooperation are needed to achieve the goal of comprehensive economic and social development throughout the country. At the same time, it is also necessary to manage the use of fiscal transfer funds more prudently and effectively, ensure that the funds are used rationally, and promote sustainable economic growth and coordinated regional development. In the future development, the central and western regions will play an increasingly important role in promoting the transformation, upgrading and sustainable development of China's economy. Let every place achieve the goal of self-reliance and independent development, and realize the overall prosperity and progress of the economy and society.