Fiscal Expenditure Performance’s Evaluation And Influence Factors Of Anhui Province

Since2008, due to the impact of the international financial crisis and other factors on the macroeconomic demand, China’s economic growth rate gradually decreased. In the background of adjusting structural, pulling domestic demand promoting growth and people’s livelihood by the government, under a series of proactive fiscal policies, local government finance’s scale of expenditure rise more quickly, while unequal of property rights and powers under revenue-sharing, makes that the revenue cannot meets spending needs, the local government deficit is rising. The implementation of structured added tax and the plan that BT reforms to VAT affects the local fiscal revenue growth trends. The estate tax and inheritance tax which are general debating cannot form a pillar of the local tax sources in the short term. To compensate for the revenue and expenditure of financing gap, local governments can only rely on land finance and local financing platform. Along with the investment boom is the risk of escalating debt.For a long time, the use of financial resources does exist the waste and inefficiency, criticized by all walks of life. With enhanced awareness of participation in public affairs, people are increasingly concerned about the results of the use of financial resources, asking the government to strengthen the financial system to improve expenditure efficiency. In addition, in nineteen eighties, under the "new public management" movement reforms, Western governments proceeded public budget management indeed achieved good results and improved the operational performance of governments. Various factors such as increasing size of fiscal spending, high deficits, public debt risk of local governments and desire of improving the effectiveness of fiscal expenditure, forced the central and local governments turn their attention to improving the performance of financial expenditure.The article starts from the financial situation, basing on the local public goods theory, public choice, fiscal decentralization and new public management theory, briefly discusses the concepts related to the fiscal expenditure performance, pointing at the entire configuration of provincial financial resources, uses econometric methods to empirically study the situation of fiscal expenditure performance of Anhui province, analyzes the efficiency of fiscal expenditure performance trends, and uses qualitative and quantitative methods to analyze factors of influencing changes in expenditure performance. Based on related theories and the results of empirical analysis, this articles will propose the advices of improving the fiscal expenditure performance of Anhui province.In this paper, the non-parametric DEA-Tobit model is used to empirical analysis the fiscal expenditure performance of Anhui province during1991to2012. The results show that:(1) There are12years in DEA inefficient state. From the view of the fiscal expenditure performance trends fluctuations and there are no large upward convergence trend.(2) Anhui expenditure scale deviates from the optimal fiscal spending scale. The low level of expenditure budget management and decision-making are the reasons of low expenditure performance.(3) The subprime crisis, the central fiscal policy, public finance reform, tax reform, the approved of Wanjiang city belt demonstration zone of undertaking industrial transfer have a huge impact on the performance of fiscal expenditure changes.(4) Per capita GDP will decrease the performance of fiscal expenditure of Anhui province; population age structure changes in the opposite direction with the fiscal expenditure performance; education level, the market level and urbanization level are in favor of the fiscal expenditure performance; GDP growth is also in positive changes with the fiscal expenditure performance of Anhui province.According to the results of the empirical research, this paper based on reasons which affect the fiscal expenditure performance of Anhui province, from budget performance reform, government management system and cities and counties’ fiscal expenditure performance aspects, focusing on allocating efficiency of financial resources, budget decision-making efficiency and system efficiency, discussed proposals to promote the fiscal expenditure performance of Anhui province.