The Evolution And Optimization Of The Public Financial Expenditure Structure In China

Since the reform and opening-up in China, especially after the establishment of market economic system, with the gradual transition of the government's function and the enhancement of the market's basic function in resource distribution, the public financial expenditure structure has been adjusted and improved progressively . Although it has already made progress in many aspects, compared with requirements of the economic development and government's changing functions, there still exist a lot of questions. To adjust and optimize the public financial expenditure structure is an important task confronting the public financial reform and development at present and for a future period from now. This paper simply summarizes the intense of the optimization of the public financial expenditure structure as three aspects: a moderate macroscopic scale of public financial expenditure, the proper proportion of public financial resource allocations, the validity of the expend of public financial expenditure. And beginning with the research of the historical evolution of our country's public financial expenditure, the paper analyzes the expenditure structure and its problems closely around the three aspects, brings forward the right approach of the optimization of the public financial expenditure structure in China. â‘ To know and define the range of the public financial expenditure in China correctly is the precondition of the public financial expenditure structure's optimization. Beginning with the theory of public products, combined with our special national conditions that our country is the economic transitional period and the market mechanism is not complete, the paper defines the reasonable range of the public financial expenditure. â‘¡The reasonable scale of expenditure is the guarantee of the public financial expenditure structure's optimization. This paper studies the causes for the trend of the expenditure's scale by theoretical and empirical analysis, and states that the relative expenditure's scale of our country is small at present and there is certain restriction on economic development. Consulting the international statistics, the reasonable scale of expenditure should account for 25-30% of gross domestic product in China. â‘¢The consummate expenditure management system is important terms to guarantee the public financial expenditure structure's optimization. This paper puts forward to strengthen the construction of public financial system in such aspects as reforming the spending ways of public financial funds, reinforcing budgetary management, improving government purchase system and etc. in order to standardize government's behavior and reduce the efficiency lose of the public financial fund . â‘£Based on the appraisement of relationship between different financial expenditure with economic growth, this paper analyses the impact of the public financial expenditure structure on economic growth, states adjusting direction of the quantitative structure of the public financial expenditure. We should optimize the inside structure of the economic construction expenditure; adjust operating expenses for culture education science and health care, increase the social security expenditure; raise the proportion of expenditure for national defense steadily; improve the efficiency of expenditure for government administration.