Analysis On The Efficiency Of Local Governments's Fissal Expenditure In China

Since the reform of the Province Governing County financial system in 2004,the scale of local fiscal expenditure continues to expand,from 767.558 billion yuan in 1998 to 129215.49 billion yuan in 2014.At the same time,the basic public service gap among regions has been expanding continuously,which is not only related to the imbalance of local financial resources,but also associated with the local fiscal expenditure efficiency,and the implementation of the Province Governing County financial system institutions in the higher proportion of the region,the higher fiscal expenditure efficiency accordingly.Therefore,analyzing the fiscal expenditure efficiency in different regions which has the different proportion of the implementation of the Province Governing County financial system has a great practical significance to further promote the reform of Province Governing County financial system,improve the efficiency of local fiscal expenditure and ensure the equalization of local basic public services.This article first elaborates the research background and significance of the analysis of the efficiency of the local government's fiscal expenditure which based on the reform of Province Governing County financial system,and defines the relevant concepts on the fiscal expenditure efficiency and the Province Governing County financial system(i.e.efficiency,technical efficiency and allocative efficiency,Province Governing County,county to expand its powers and expansion of strong county)and theories(i.e.the public goods theory,the local public goods theory,fiscal decentralization theory,flat organization theory).This article analyzes the current situation of the scale of public expenditure in China,including the analysis of the general trend from 1998 to 2004 and the current situation of expenditure structure from 2007 to 2014.This article adopts the nonparametric data envelopment analysis tool(DEA),which is popular in performance evaluation,and selects the index data of 27 provinces(except Beijing,Shanghai,Tianjin and Chongqing)from 2010 to 2014,then calculates the 27 local governments of the financial expenditure efficiency.It is worth mentioning that according to the proportion of China's Province Governing County is different,the 27 province is divided into three regions,A district,B district and C district.The proportion of A district is more than 90%,including 12 areas;the proportion of B district is between 30% and 90%,including 8 areas;the proportion of C district is less than 30%,including 7 areas.This article analyzes the technical efficiency,pure technical efficiency and scale efficiency of fiscal expenditure in three regions from the micro,medium and macro levels of the three areas.As a whole the difference of technical efficiency and pure technical efficiency between the 27 regions of China from 2010 to 2014 is relatively large,but the difference of scale efficiency is small and the average score is higher.;Sub-region,the A district's technical efficiency and pure technical efficiency of the local government's fiscal expenditure from 2010 to 2014 in the three regions are the highest,followed by the B district and C district are the lowest.From the perspective of efficiency structure,the scale efficiency of local government fiscal expenditure from 2010 to 2014 is the highest,which is closer to the efficiency frontier,but technical efficiency is the lowest.Based on the above conclusions,this article puts forward some policy suggestions to improve the efficiency of fiscal expenditure: accelerate the process of reform of the Province Governing County financial system,build the institutional basis;strengthen the management of local fiscal expenditure,improve the management basis;improve the budget management system,lay the foundation of the system;standardize the performance evaluation system of fiscal expenditure,establish the Daobi mechanism;establish the embedded fiscal expenditure supervision mechanism,consolidate the basis of security...