Study On The Effect Of China's Fiscal Expenditure On The Economic Growth

Fiscal expenditure is an important tool which a state used to distribute the existing resources more rationally, in order to optimize economic growth . Financial expenditure and the government functions'implementing tightly linked, effective fiscal expenditure policy is of great significance to implementing fiscal functions, changing the mode of economic growth, giving guarantee for social equity, realizing the objectives of a harmonious society and so on. China's institutional restructuring process has proved that the fiscal expenditure policy can play an indispensable role.By methods of theoretical analysis, transverse data comparing combined with empirical model, this paper reveal our country's fiscal expenditure and economic growth comprehensively, thoroughly, and perspectively.At first, this paper analyzes the fiscal expenditure purposes, the source of economic growth and fiscal expenditure is how to affect economic growth at these aspects. State derived from theoretical function'deducing results: Fiscal expenditure has the different function to the economy in economic system of dissimilarity , expenditure scale established in the case, the structure of fiscal expenditure also play an important role. This also explains the phenomenon of fiscal expenditure in each state will have different effects. Plotting of fiscal expenditure shows that our fiscal expenditure proportion of the total economy is too small, and there is a considerable gap of the fiscal expenditure proportion of the total economy between our country and the other countries of the world. Then, by using econometric model which base on our country'fiscal expenditures that contain budget and extra budget and the corresponding year economic statistics data, this paper get a empirical analysis conclusion that China's fiscal expenditure and economic growth is positively correlated and the scale of fiscal expenditure should be expanded at now. Based on the structure of financial expenditure will lead to different economic effects, further more, this article analysis the reorientation of our country'fiscal expenditure structure and the problem existing in China's fiscal expenditure structure and the fiscal expenditure management system and at last give a related countermeasures for the analysis.