Research On The Role Of Fiscal Expenditure In Poverty Reduction

With the rapid development of economy in our country,the poverty situation has been greatly improved,from the early universal poverty has narrowed to regional poverty.However,as of the end of 2015,according to the current national poverty standards,the poverty population in our country is still up to 55.75 million,and these poor people are mostly concentrated in the remote areas where contain harsh environment,their education level and labor capacity is also poor,these problems greatly increase the difficulty of poverty reduction.In order to solve the poverty problem and improve the welfare of all citizens,the Fifth Plenary Session of the Eighteenth Central Committee of the Party in 2015 made it clear that,“Achieving the all rural poor people out of poverty which under the current standard in 2020,all poor counties get rid of poverty,solve the regional overall poverty.” At the end of 2015,the Central Committee and the State Council also officially released “On the decision to win the fight against poverty”,announced the implementation of accurate strategy for poverty alleviation,speed up the poor people out of poverty.Therefore,in order to play the role of government poverty reduction better,studies the poverty alleviation mechanism of fiscal expenditure in our country has the very vital significance.Based on the background of Chinese government-led poverty reduction practice,uses the combination analysis between "Transfusion type" and "Hematopoietic type" fiscal spending way in poverty reduction,this article adopts the method of combining theoretical analysis and empirical test to deeply study the poverty alleviation mechanism of fiscal expenditure in our country.The main contents of this paper are divided into the following five parts:The first part is conceptual definition and related theory.Clearly defines the concepts of multi-dimensional poverty,poverty reduction and fiscal expenditure which this paper involved,expounds the main contents of the relevant poverty theory,government function theory and fiscal theory in poverty reduction,and draws the inspiration and reference for this article.The second part mainly analyzes the current situation of fiscal expenditure alleviating poverty in China.First,analyzes the changes of fiscal expenditure scale and structure in recent years from the national and provincial levels,revealing structural problems of fiscal expenditure and regional differences.Second,from the poverty standard,population size and distribution,multidimensional poverty features three Angle to fully understand the real poverty situation in China.On this basis,identify the key factors of future poverty reduction and the related issues to be solved.The third part is the construction of poverty reduction mechanism of Chinese fiscal expenditure.Based on the foregoing realities theories and the actual situation of fiscal expenditure and poverty in China,we first analyze the poverty reduction effect of "Transfusion type" and "Hematopoietic type" fiscal expenditure in our country,and elaborate the two kind theoretical path of poverty alleviation.Second,from fiscal inside,government behavior and the external environment to sort out which aspect may affect the above-mentioned poverty reduction effect,so as to form the poverty reduction mechanism of fiscal expenditure which including poverty reduction effect and its influence factors.The fourth part uses the empirical model to test the above poverty reduction mechanism of fiscal expenditure.Respectively choose VAR and Tobit measurement model to test the poverty reduction effect of fiscal expenditure and its influence factors in our country,the results show that "Transfusion type" and "Hematopoietic type" fiscal expenditure both can reduce and eliminate poverty,and the poverty reduction effect of "Hematopoietic type" fiscal expenditure is more significant.The significant effect is also affected by labor participation rate,social investment intensity and the replacement degree of regional officials.Improve our labor force participation rate,the marginal propensity of social investment and timely replace the region officials can promote the poverty reduction effect of "Hematopoietic type" fiscal expenditure more effectively.The last part on the basis of research conclusion in this paper,puts forward some suggestions on how to improve the social security system,increase the fiscal expenditure,perfect the related exogenous factors,standardize the government behavior and actively guide the non-governmental forces to participate in poverty reduction,hoping to provide beneficial enlightenment to improve the poverty reduction efficiency of Chinese fiscal expenditure.