Local Government Expenditure And Economic Growth

Since, economic growth is as the important goals of country executes various policy measures, granted, also included macroeconomic policy goals of the fiscal policy. So in order to promote the economic development, the government in addition to take reasonable of fiscal expenditure policy measures, still must be reasonable coordinating fiscal expenditure structure of different economic benefits. Since the 16th CPC national congress, according to the scientific concept of development requirements, adhere to the people-oriented, and continue to optimize expenditure structure, increasing to public service domain input. The party congress, held in accordance with after thoroughly apply the scientific outlook on development, accelerate to construct the requirements of a socialist harmonious society, optimize the structure of fiscal expenditure, and further enhance the people's livelihood guarantee of such key spending. Since the reform and opening, the economic achieved in fujian province development by leaps and bounds, and its economic growth of fiscal expenditure total in the country has a bigger advantage. Therefore, the study of fiscal expenditure of fujian province on economic growth, and the influence of each part of fiscal expenditure on economic growth throughout the nation ,which has an important significance. With the fourth session of the 11th National People's Congress and the 11th National People's fouth Congress held in fujian, in order to meet the challenge,through various policy measures of local government promoted the rapid development of economy, but also gradually pay attention to construct the harmonious society and people's livelihood engineering field, the government most of the policy measures are through the means of fiscal expenditure. Therefore, we should focus on the budgetary outlays, but also the absolute amount to concern fiscal expenditure structure on economic impact. On the current situation, although local fiscal expenditure has been clear in many low benefits or no economic benefit, but local financial expenditure absolute scale expanding still significantly increased the amount of spending, and not in the budget reflected, which lack the masses' supervision, so the local government debt phenomenon is more and more frequent, increasing the local government debt risk. On the current local financial expenditure, local government faces a more difficult choices:How to improve efficiency of fiscal expenditure? How financial expenditure structure adjust to adapt to the current economic and social development needs? Which part of expenditure structure should be cut? Which part of expenditure structure should be increased? Therefore, this paper, through studying financial expenditure influence on economic growth to China's current fiscal reform also has a practical significance.In this paper, based on the former research for reference in fujian province after reform and opening-up, local government spending and economic growth as the research object, using normative analysis and empirical analysis methods to study local financial expenditure of fujian province size and expenditure structure economic benefit from four aspects: First, use normative analysis method, puts forward the related meanings financial expenditure; Secondly, the data through statistical yearbook of fujian province, 1978 - 2009 fiscal expenditure condition analysis; Again, use Eviews software, according to the actual situation of fujian province, through multiple linear regression model using minimum squares (to fujian OLS) since reform and opening up the fiscal expenditure scale, financial expenditure structure and economic growth as an empirical analysis of the relationship. Since 2006 future financial expenditure structure change, so divided caliber, in this article, the first to 1978-2006 financial expenditure structure make a time series analysis, and then all of 2009 downtown financial expenditure do a section analysis results, such already reached on financial expenditure structure on economic growth, this article analyzes the influence of financial expenditure and economic growth,and development of urban should pay more attention to what expenses; Finally, through the above standard analysis, performance analysis and empirical analysis result in fujian province, puts forward the local financial expenditure existing problems and solutions.