The Analysis On The Different Supply Of Chinese Local Public Goods

Some data showing that, nowadays one of the important reasons causing the gap between regional development and urban-rural areas is the imbalance of the supplies of public goods. Under the requirements of public financial objective of"equalization of basic public services", how to look into the problems existing in our public goods supplies objectively and fairly, to further analyze the causes, have undoubtedly theoretical and realistic significance towards promoting economic development, narrowing the gap between regions and realizing urban-rural coordination.The basic characteristics of public goods are non-competitiveness of consumption and non-exclusiveness of benefit, most of them represent limited non-competitive and non-exclusive goods in specialized geographic and spatial areas, which we call local public goods. The supply of local public goods plays an important role to local economic and social development; local public goods supply balance is also an important factor in affecting the balanced development of urban and rural areas. Therefore, this article takes local public goods as subjects, first conducts a comprehensive and profound descriptive analysis on the status of the supply of local public goods, then from the two aspects of financial management system and non-financial management system, explores the reasons for the imbalance of the supply of local public goods, and under empirical analysis, identifies the relationship between local public goods supply and economic development, finally suggests some appropriate policy recommendations.Different from previous literature, in the descriptive analysis of local public goods supply, this article not only adopts qualitative description, but also adopts a large number of statistical data used as evidence, which we can have a clear glance of the current local supply of public goods status. Through the analysis it is found that, in general our local public goods lack of effective supply, people's livelihood, and public welfare and the basis of the provision of public goods are not in place; and imbalance in the supply structure between urban and rural areas, which greatly exacerbated the gap between regional economic developments. Limited to the existing statistical data, this article selects three typical local public goods of public education, public health and infrastructure as examples, and gives specific analysis of its supply problems. In public education, the fiscal expenditure on education accounted for the proportion of fiscal expenditure is fairly low, and the expenditure structure is not reasonable, educational resources in the eastern, central and western regions as well as the areas within the province are uneven; public health expenditure is weak; A large gap of health resources in the distribution between urban and rural areas, the allocation of resources is imbalance; the average level of infrastructure development is low, and demand structure and the layout is unreasonable, a significant gap between eastern, central and western areas, rural infrastructure supply lagged behind, etc.Then from the financial management system and non-financial management system points of view, this article continues to explore the causes of supply inadequacy and imbalance, first layers of anatomy to say that in between the government and the market should be in accordance with market priority principles, in between governments should be defined in accordance with the principle of giving priority to local authorities. Our country's fiscal system and tax system as a result of incomplete division of powers, resulting in between the government and the market "offside", "lack of" co-exist, between all levels of government down the wrong power, power asymmetry property, the lower the efficiency of transfer payments, Combination of these circumstances, leading to widespread financial difficulties in the grass-roots level, often are unable for the supply of local public goods. From the perspective of non-financial management system, the unequal status of political and economic as characteristics portrayed three situations of the characteristics of the supply of public goods in developing countries, pointing out that the status of political and economic inequality, the deep-seated cause of low level and imbalance supply of public goods. The poor by giving equal political rights and economic status of the supply of public goods can increase quality, reduce the poverty rate, and improve the economy and the growth rate of total revenue.In order to verify the impact of supply of public goods on the economic growth, this article makes use of 31-year period 1997-2007 the provinces (excluding Hong Kong, Macao and Taiwan) of the panel data, public education, public health and infrastructure as explanatory variables, explained variables level of economic development are GDP data to study the relationship between the two. Studies have shown that the supply of public goods at different levels of GDP have significant role in promoting and different contribution rate of public goods in the provinces there is a big difference between the eastern region, the most obvious effect, the middle western region, and the impact of the central region minimum. Article from the equalization of basic public services the objective of appropriate explanations are given.Finally, on the basis of summing up the whole paper, puts forward several political suggestions for the solution of imbalance in the local public goods supply, that is, to deepen reform of the political system, promote the coordinated development of the implementation of the strategy; public finances in accordance with the requirements of the market economy and regulate the functions of the government; by the property and the principle of division of power to match income; to the division of power into the orbit of the rule of law; a well-established financial management system below the provincial level, and enhance grass-roots government's ability to provide public goods; perfect transfer payments and promote inter-regional equalization of basic public goods and building performance evaluation system of financial expenditure.