Study On The Influence Of Jiangsu Fiscal Revenue And Expenditure Structure On Income Level And Income Gap Between Urban And Rural Residents

The main problem of social concern is how to raise the income level of urban and rural residents and narrow the income gap between urban and rural areas.Which kind of fiscal revenue and expenditure is beneficial to increasing the income level of urban and rural residents? On the contrary,Which kind of fiscal revenue and expenditure reduces the income level of urban and rural residents? Is there any fiscal revenue and expenditure that can not only improve the income level of the residents,but also reduce the income gap between urban and rural residents? Whether a series of financial and tax preferential policies can really play a important role in improving the poverty and redistributing the income? In order to answer the above questions,this paper takes the Jiangsu Province as an example to carry out the following research.Firstly,from the theoretical analysis,this paper concludes that the impact of various fiscal revenue and expenditure structure on the income level of urban and rural residents and the income gap between urban and rural residents is uncertain.Some welfare expenditure does not make obvious effect because of the tendency of urbanization in policy.Afterwards,this paper describes the present situation of Jiangsu's fiscal revenue and expenditure structure and the current status of urban and rural residents' income.Secondly,according to the data of Jiangsu prefecture-level cities from 2007 to 2016,the fixed effect model and system GMM model were established for empirical analysis.The article achieves the following conclusions:(1)Education expenditure,medical expenditure and social security and employment expenditure increase the disposable income of the whole population,urban or rural residents.Agricultural and forestry expenditure can significantly improve the income level of rural residents.Because of its lagged effect,science and technology expenditure has no significant effect on the income level of urban and rural residents.Other financial expenditures have no significant impact on the income level of urban and rural residents.Education expenditure,science and technology expenditure,medical and health expenditure,social security and employment expenditure and agricultural and forestry water transaction expenditure narrow the income gap between urban and rural residents.It shows that the recent education expenditure,medical and health expenditure,science and technology expenditure,and social security and employment expenditure are being adjusted.(2)Increasing the proportion of property tax revenue and social security fee income can significantly increase the income of urban and rural residents.Income tax reduces the income level of urban and rural residents.The turnover tax income has no significant influence on the income level of urban and rural residents.Only individual income tax has a significant impact on the income gap between urban and rural residents.The property tax did not adjust the income gap between urban and rural residents.The main reason is that the current property tax system in China is not perfect.For example,property tax and grant tax that other western countries generally levy taxes,China has not set up a complete system standard.Lastly,on the basis of the empirical results,this paper has the following suggestions:(1)Jiangsu should increase the proportion of education expenditure,medical and health expenditure and social security and employment expenditure in fiscal expenditure.At the same time,these resources should be tilted to the rural areas.It is important to increase the investment in scientific research on agriculture.The efficiency of technology spending must be increased.The government should increase the proportion of agricultural and forestry expenditure.(2)In general,the state should optimize the revenue structure.Jiangsu can promote property tax legislation and prepare the reform of individual income tax.It can be suggested to reduce enterprise income tax.At the same time,the financial departments should cooperate with the human resources and social security departments to establish the information exchange and feedback system.