Fiscal Expenditure Scale And Structure Research Of The Impact On Economic Growth

Local fiscal expenditure is an important part in the local socio-economicdevelopment, it has a significant impact to the development of its local public utilities,infrastructure construction. The past three decades, China’s total local fiscalexpenditure is increasing, and since1996, the local fiscal expenditure relative size isalso increasing, how to optimize government spending so that it is most effective foreconomic growth, local governments have been facing problem.The optimization of the local fiscal expenditure in China from three aspects werediscussed: First, the endogenous growth model, theoretically proved the existence ofoptimal scale of fiscal expenditure and the optimal structure of the proportion ofeconomic growth adapt; followed by measurement Evidence obtained the relationshipof the eastern region, central region, the western region and in the country within theoptimal size of fiscal expenditure, as well as financial expenditure of infrastructureexpenditure, public service spending, social spending with regional economic growth.Finally, the paper put forward corresponding countermeasures and suggestions forempirical findings and China’s actual situation.The results of the analysis show that various countries are on the scale of localfiscal expenditure on economic growth, the role of performance to promote. Actualscale of fiscal expenditure, close to the optimal from the national point of view, froma regional perspective, the eastern region has not yet optimal, to central and westernregion has exceeded the optimal size of fiscal expenditure, therefore, localgovernments should be suitably adjusted. From the national level, fiscal expenditureon economic growth, social spending on economic growth and significantly positive,the infrastructure category of expenditure with minimal impact on economic growthand insignificant, the local level, from the eastern, central and western region’seconomic role in promoting the social spending; infrastructure category ofexpenditure hinder the economic growth of the western region, eastern and centralregions of the eastern part of the economic impact of minimum; public servicecategory of expenditure have a significant role in promoting the economicdevelopment of eastern and central regions, the effect on the economy of the westernregion is not obvious.