A Study On The Influence Of Budget Openness On The Fiscal Expenditure Scale Of Scale Of Local Government

Public sector expenditure growth theory explains the fact that the scale of government expenditure is increasing, but it focus on processing analysis. A number of studies have indicated that the scale of government expenditure is too large relative to the optimal expenditure, and excessive expenditure will restrict the economic development. Laffont J.-J government principal-agent model believes that the size of the government spending is too large may come from the lack of information available to the public. Budget disclosure is not able to effectively solve the problem, the scale of government spending is too large to be revised, it has become the focus of this paper. This article through further deduced that public budget on the one hand to the public information lack improved, can be in a certain extent, limit the size of government increases too much; on the other hand, budget disclosure of government complexity and externality will increase the cost of government, budget information disclosure effect is poor, relatively high cost. This inhibition budget disclosure of government scale and limitation of action. In this paper, the use of systematic generalized method of moments, the 16 provinces of China’s provincial dynamic panel regression, that the current budget public effect can not effectively limit the size of government spending is too large. At the same time, this paper further analysis the reasons that cause the situation put forward policy recommendations.