An Empirical Study On Finance Expenditure Of Guangdong Province

With the development of regional economy and the deepening of the reforms, thelocal finances of Guangdong Province has been restructured in order to adapt to thepublic finances. However, as the expenditure reforms lag behind, there are manyproblems impacting on the implementation of the local governments' financefunctions and goals seriously. So it is of great theoretical and practical significance tostudy the finance expenditure of Guangdong Province, for it can speed up the reformof financial expenditure, promote the quality of the financial operations, strengthenand standardize the expenditure management.Firstly, through the scale analysis, the thesis find that the finance expenditurescale of Guangdong province adapts itself to the economic development in most ofthe years, then we analyze the factors that affect the financial expenditure scale of thelocal governments, including economic, social and population factors and so on. Atthe same time, with the help of the mathematical model, we consider the financeexpenditure proportion of Guangdong province should be more appropriate at11%-15% of the GDP; after analyzing the structure of Guangdong Province'sfinancial expenditure, we find out that there exist a lot of problems for example, theadministrative expenses grow rapidly, while the expenditure proportion of science,education,culture and health is still on the low side; the total expenditure of ruralsupport is still inadequate, the expenditure proportion of infrastructure construction ison the decrease, and the social security expenditure is obviously too low. These issuesare caused by the unbalanced level of economic development, the narrow scope of thegovernmental functions, and the lower lever of the financial management; Finally,we believe that: the optimization and adjustment of the financial expenditure inGuangdong Province should aim at public finance, emphasize effectiveness anddynamical optimization on the base of the scope of the governmental functions andthe economic development All these will be achieved by defining the expenditure scope clearly, strengthening expenditure management, reforming the focus ofexpenditure and improving expenditure method.