The Optimization Reaserch Of The Effecct Of Fiscal Expenditure On Livelihood On Resident’s Consumption In China

In recent years, China’s fiscal expenditure scale and the strength increasing, providing security in coordinating economic development and optimizing the allocation of resources. But the efficiency and the structure of fiscal expenditure is yet to be optimized at present, especially the relationship between the people vital interest of health, education, culture, pension, employment and agricultural fiscal expenditure is still relatively weak, blocking the release of the residents’ consumption potential. To further boost domestic demand and stimulate consumption, government increases the intensity of people’s livelihood spending, optimizing the fiscal expenditure structure on livelihood is becoming a hot spot of government and the educational world attention. There are many scholars on the impact of government spending policy on consumption from its mechanism of action and effect are studied deeply and widely. But the reseach of fiscal expenditure on livelihood is still relatively small. This paper attempts to start from government expenditure effecting on resident consumption demand, through the combined method of theoretical analysis and empirical analysis, to analyse the strategy that adjusting government expenditure structure to increasing resident consumption.In this paper, the culture and education, social security and rural spending are as three dependent variable data through C hina Statistical Yearbook 1991-2013, and given the two structure in urban and rural areas. Then established the ARDL- ECM model about the consumption level of rural residents and the city residents. The study found there is a certain relationship among the fiscal expenditure on livelihood, the urban residents’ consumption level and the rural residents’ consumption level, there are the same change trend. The social security spending will squeeze out some residents’ consumption spending. Based on this, a strategy for the structural adjustment of C hina’s fiscal expenditure on livelihood to find theoretical basis, to provide feasible suggestions to optimize the effect of the fiscal expenditure on increasing resident’s consumption, so as to achieve the aim of vigorously ensuring and improving people’s livelihood.