The transfer payment should exert the economic and social stability effect.\nHowever, the empirical data show that the total amount of transfer payment\nvaries greatly in different regions and deviates from the goal of the transfer\npayment system to a certain degree. If per-capita transfer payment is adopted\nas the analysis variable, from 1998 to 2015, 31 provincial government financial\ndata were used to empirically test the impact of per-capita transfer payment\non the stability of provincial fiscal expenditures. Based on the analysis of the\ninfluence of fiscal self-sufficiency and the 5 types of fiscal expenditures closely\nrelated to economic and livelihood stability, we can find that the per-capita\ntransfer payment has a significant negative correlation with the stable effect of\nfiscal expenditure, while the effect of fiscal self-sufficiency on the provincial\nfinancial expenditure has no significant effect. Science and Technology Expenditure,\nMedical Expenditure on the stability of local fiscal expenditure has\na more significant negative effect. The influence of Educational Expenses on\nthe stabilizing effect of local fiscal expenditure is not significant. Social Security\nExpenditure has the same effect as Cultural Expenditure, and has a significant\npositive impact on the stability of local fiscal expenditure. In order to\nfurther enhance the stabilizing effect of transfer payment on local fiscal expenditure,\nwe should improve the current transfer payment system and improve\nthe fiscal expenditure structure of local governments.
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