The Efficiency Of Expenditure Promoting The Development Of The County Town In Hunan Province

At present, China is in such a critical period, that is to change the way of economic development, promote urban-rural integration, build a harmonious society.To achieve these goals, taking the road of industrialization and urbanization is the best choice, especially the urbanization.Urbanization has been developing for a long time. Today, bearing capacity of cities has gradually become saturated,its ability to balance urban and rural development is limited, people begin to put the focus on the development of small towns. A series of policies formulated by the state also reflect a growing emphasis on the development of small towns. Development of small towns is so important, expenditure as the main source of funding and policy control means, its importance is self-evident.Fiscal funds have to support the building of infrastructure,education, health care, social security and so on. But for the county of small towns,the local government has limited financial resources. In order to accelerate the development of small towns, improving the efficiency of its spending is the solution.The purpose of this paper is to provide some recommendations for improving the expenditure efficiency.This article firstly introduces the background and significance of the research,summarizes the relevant research status at home and abroad. Then, it defines towns and other related concepts, elaborates the connotation of development of small towns and the necessity for development of small towns. Next, it analyzes the development status of Hunan county town and related expenditure policy. On this basis, we use DEA and Malmquist Index model estimates the expenditure efficiency on the promotion of urban development, which chooses 28 counties in Hunan Province as the decision-making unit. According to the empirical results and the actual situation in Hunan Province, we analyze the reason of inefficiency, and finally propose some effective countermeasures to improve the fiscal spending efficiency on development of county towns.