A Study On The Evolution Of The Public Expenditure Structure In China

The reform of public finance has profound significance for the whole reform process and economic development of China. To change the model of public finance and optimize the public expenditure structure is an urgent issue we should deal with. This paper divides the public expenditure into three parts, the economic expenditure, the societal expenditure and sustaining expenditure on the reference of western public finance theory. Based on this, this paper analyzed the track, degree, characteristic and impetus of the national and local public expenditure structure evolution.The main conclusions of this paper are as follows:(1)The budgetary finance model of China is turning to public finance model of market economy. After taking extra-budgetary public expenditure into consideration, the total finance model of China has transformed to government-consuming model, this signified the deterioration of the national public expenditure structure.(2)There are three impetus of the finance model evolution, the first is the institutional impetus of system transition ,the second is the consuming structure upgrading and the third is the growth of non-public sector.(3)The main problem of the national public expenditure structure is the ineffective range of economic public expenditure and the too-big proportion of government expenditure administration. To solve these problems, we should adjust the range of economic public expenditure on the basis of adjusting government function range and normalize the extra-budgetary finance funds.(4)The local budgetary public expenditure structure are also turning to public finance model of market economy. Because of the disparity of developing degree, different province has formed different track of public expenditure structure evolution.(5)To optimize the public expenditure structure of undeveloped region we should take measures as adjust the range of government function but more importantly we should accelerate the economic development of these region by all kinds of ways such as improving the inter-government transfer-payment system and so on.