The State Council's executive meeting held on the 23rd listened to the report on establishing an incentive and constraint mechanism for transfer payments to promote high-quality development. The meeting pointed out that transfer payments should play a guiding role in the high-quality development of localities. "Transfer payments are an important policy tool for the government to achieve its regulatory goals," said He Daixin, director of the Fiscal Research Office of the Institute of Finance and Economics of the Chinese Academy of Social Sciences. Transfer payments are mainly used to address fiscal imbalances among regions and promote the equalization of basic public services between regions. This meeting proposed to arrange incentive funds to lean towards regions with high tax contributions and faster income growth, which is a new change for this tool of transfer payments. (Xinhua News Agency)