This article sorts out the evolution of the central fiscal transfer payment system and the changes and trends of transfer payment management, and uses spatial analysis, correlation coefficient analysis, Gini coefficient analysis, and RE index analysis to investigate the mechanism and effect of central fiscal transfer payments on promoting regional coordinated development in China. The conclusions are as follows: 1) The central financial transfer payment system has been continuously improved, and the fairness has been continuously improved. The development trend of transfer payment is mainly reflected in the continuous increase of scale, continuous improvement of precision, and continuous enhancement of local balance. 2) The transfer payments from the central government have reduced the gaps in basic public services, infrastructure accessibility, and people's living standards among provinces, and promoted the balanced improvement of various provincial coordinated development indicators. 3) The transfer payment of the central government promotes regional coordinated development mainly by promoting the equalization of per capita fiscal expenditure and regulating the expenditure behavior of local governments. Finally, this paper puts forward policy suggestions for improving the transfer payment system and regulating the fiscal expenditure behavior of local governments below the provincial level.
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