Building An Effective System Of Fiscal Expenditure In Xinjiang

Based on social equity and economic growth, the research is to build an effective system of financial expenditure in Xinjiang. This paper analyzes the effects on local economic growth by the scale and structure of fiscal expenditure in theoretical and empirical way in Xinjiang. The main conclusions are as follows:Since the reform and opening up, the scale of fiscal expenditure in Xinjiang shows a pattern of"W"; fiscal expenditure elasticity basically shows an irregular fluctuating. By the use of Barro efficient natural conditions in government expenditure I estimated the scale of the optimal financial expenditure in Xinjiang is about 28.1143%, using 1978-2008 Xinjiang data of financial expenditure. According to data availability, this paper on agricultural expenditure, capital expenditure, health expenditures, Education, Science and administrative expenses for four categories of expenditure on economic growth, as well as the impact of the spending response function in economic growth were compared. Fitting results based on historical data, other factors make in the case of fixed expenditure to maximize economic growth, fiscal expenditure on agriculture shouldn't be less than 1.38% in GDP, the capital expenditure of not less than 3.35% in GDP in the vicinity; Culture and Education, Science and Health expenditure should not be less than the GDP in 4.50% in the vicinity; administrative expenses should not be less than the GDP in 1.92% in the vicinity. If 28.1143% as the optimal scale of fiscal expenditure, Xinjiang agricultural expenditure, capital expenditures, Education, Science and health expenses, administrative expenses for the financial expenditure respectively accounted for 4.91%, 15.48%, 15.99%, 6.83%.Since the reform and opening up, the structure of agricultural expenditure elasticity of Xinjiang is -0.487; the structure of the output elasticity of capital expenditure is -1.36; the structure of Culture, Education, Science and Health expenses in Xinjiang elasticity is 1.34, which in the fiscal expenditure structure is currently the largest contribution to economic growth in Xinjiang; the elasticity of the structure of administrative expenses is 0.345, which points to economic growth in the contribution of expenditure, ranking second.In order to effectively promote Xinxiang's economic growth, we need to establish an effective system of financial expenditure. Firstly, according to the fact of Xinjiang, we have to define the scope of financial expenditure in Xinjiang; then, we must optimize the scale and structure of fiscal expenditure, and its ideal state is to achieve scale and structure of fiscal expenditure dynamic optimal. Concrete can be optimized in two aspects: First, increase moderately the scale of fiscal expenditure; Second, optimize the structure of fiscal expenditure, specifically including: the steady efforts to improve financial support for agriculture; appropriately increase in capital expenditure; substantially increase in health spending, Education, Science; slightly expand administrative expenses. Finally we also have to perfect the relevant measures and improve the affectivity of fiscal expenditure.