The Impact Of The Financial Expenditure On The Consumption Of Rural Residents

In recent years, China’s national economy has maintained a high-speed and stablegrowth. The supply constraints type of economic growth mode gradually be demandconstrained replaced and demand factors such as investment, consumption and exportshas become the key to promote China’s rapid economic growth. Under the economiccrisis, how to stimulate household consumption and investment is the golden key toChina’s continued economic growth. The countryside is China’s largest and the mostbasic consumer market,changing consumer attitudes of farmers is a top priority ofChina’s economic development.Now, due to the constraints of the urban-rural dual structure, has been aconsiderable gap in the standard of living of the rural and urban. The lack of consumerdemand in rural markets directly affect the quality of life of the rural residents, and tolimit the development of our national economy. Moreover, rural residents in China havetoo conservative consumer attitudes, consumption structure is not rational. The level ofsurvival data consumer spending is high,but the level of the enjoyment and developmentconsumer spending is low.Development to a higher elasticity, enjoy the type of datatransfer can not only drive the development of related industries, and create more jobs,thereby increasing the income of rural residents, to promote the further consumption ofrural residents,but also to be useful to the level of consumption and quality of life ofrural residents.This article not only briefly describes the theory on fiscal spending and consumerspending, but also describes the development status of the past three decades of China’sfiscal expenditure and rural residents’ consumption spending. After, through theestablishment of the mathematical model, derived cointegration relationship of fiscalspending and consumer spending, and thus establish the measurement model. Throughempirical analysis of nearly five years of quarterly data, we draw the relevantconclusions. From the total, the increase in fiscal spending can increase consumerspending and the proportion of enjoyment consumer spending. Therefore, it isreasonable to expand the scale of fiscal spending for promoting the consumption ofrural residents and improving residents’ consumption structure. Different types offinancial expenditure has different effect on rural residents’ consumption structure. Wemainly analyzed general public services spending, science and education spending, social security and employment spending, health care spending, and agriculture, forestryand water affairs spending. The study indicates that the general public services have acrowding-out effect on consumer spending, so the reduction in the general publicservice spending is necessory. science and education spending, social security andemployment spending can squeeze into the farmers’ consumption, but reduces thedevelopment of the proportion of the enjoyment and consumption data.This is becausethe science and education spending, social security and employment spending wasmainly targeted at the poor economic conditions of rural residents, the group of peopleof a lower quality of life. Though science and education spending and spending onsocial security did not increase the proportion of development of enjoyment andconsumption data, but to improve the quality of life of the poor. The increase in healthcare spending reduce the economic burden on farmers for medical treatment, andincrease the disposable income of rural residents, the rural residents can have morespare cash for a higher elasticity of consumer purchase. Therefore increased theproportion of the development of the enjoyment and consumption data, Optimized therural residents’ consumption structure. Agriculture, Forestry and Water Affairsexpenditure has substitution effect to rural residents consumption,that is because thestructure of agriculture, forestry and water spending is not rational, need to be adjusted.