Empirical Analysis And Reform Of The Financial Expenditure In Beijing To Study

Since reform and opening up from 1978, with the deepening of reform and the rapid economic development, Beijing has been expanding scale of fiscal expenditure and optimizing the structure of fiscal expenditures continuously. However, due to institutional factors, there are still many problems impacting on the implementation of government's macro-control function. Therefore, it is of great theoretical and practical significance to study the fiscal expenditure, for it could promote the quality of fiscal operation, improve the capacity of making policy.Firstly, On the basis of local public finance theory, the paper did a detailed analysis of the scale of fiscal expenditure of Beijing. By analyzing, it tells that there exist a lot of problems, including: It is badly for fiscal expenditure to play a role in the functions of macroeconomic regulation. The instable revenue of Beijing could not afford the stability of revenue growth, resulting in unsustainable fiscal expenditure. It is relatively weak to support ecological conservation development areas, in terms of other functional areas. Due to a larger spillover effect of fiscal expenditure, it always affects the function which the fiscal expenditure would give full play on.Secondly, the paper did a detailed analysis of the structure of fiscal expenditure of Beijing. By analyzing, it also tells that there exist a lot of problems, including: The expenditure proportion of social security is far from enough to meet the demand which people need in Beijing. The low proportion of expenditure with forestry ecological environment is far from enough to meet the required which the environment protection and the development of green industries have in Beijing. The expenditure proportion of science is still on the low side and makes little progress to technology. To some extent, the administrative expenses are still support by the growth of fiscal expenditure.Finally, it put forward a perfect idea and measures to promote the quality of fiscal expenditure. It is very important for government to improve the capacity of the resources allocation by adjusting the scope of fiscal expenditure. Setting up long-term mechanism to increase revenue is also of significance to promote the sustainability of fiscal expenditure. Optimizing the structure of fiscal expenditure is important for people. And improving the fiscal transfer payment system to promote equalization of public services is important for people in Beijing.Taking theoretical research and empirical analysis as combination, qualitative analysis with quantitative analysis, it did a detailed analysis of fiscal expenditure in Beijing. It based on the empirical analysis and it is the biggest feature to apply the cluster analysis on 31 provinces' fiscal expenditure data.