China's Fiscal Expenditure Structure Optimization Study

The essay analyzes the fiscal expenditure structure of our country by means of governmental function classification. Fiscal function inherently belongs to a government and should change accordingly with the change of government function. Therefore, it's the first step to clarify the fiscal policy objective and properly define the fundamental content of the fiscal function.It redefines the fiscal functions of our public finance after analyzing the Western public finance theories and studying the current economic features of our country. It concludes not only such functions as resource allocation, income distribution and economic stability, but also promoting development function which is new under market economic conditions.Then it analyzes the current situation of our fiscal expenditure function structure and further points out the main direction of optimizing the structure by drawing on the practical experience of market economic countries and considering our reality. On the one hand, it's imperative to change the current structure, to hand to market the products and services what market can provide efficiently to change the current distribution situation and increase the fiscal expenditure that market can't do actively for the sake of good solution to "beyond its duty" and "not yet finish its duty". On the other hand, fiscal expenditure should embody its function to promote a country's development it's necessary to increase constructional expenditure such as fiscal investment in agriculture, back bone enterprises of state-owned economy, pillar industries, guiding industries, basic industries and so on to ensure the rapid, healthy and all-round development of our country.