Research On Local Government Financial Expenditure Structure Bias

Finance is the basic premise and a central pillar of national governance.The local fiscal expenditure structure is the embodiment of the local government that focus on economic and social development in the region.According to data in the caliber of the general public budget analysis,Local government has obvious expenditure structure bias——Constructive fiscal expenditures that bring GDP growth in the short term,the education,health and other livelihood fiscal expenditure has been low,one of the main reasons for this phenomenon is vertical fiseal imbalance.Thus,from the perspective of vertical fiscal imbalance,study the bias of the local government's fiscal expenditure structure.It is of great significance to coordinate the financial relationship between the central and local governments,rationally divide the financial power of affairs,and optimize the structure of local government fiscal expenditure.First,The paper selects the data on the general budgetary expenditure of local government finances in the 2008-2017 China Statistical Yearbook,divide local government fiscal expenditure into constructive fiscal expenditure and people,s livelihood fiscal expenditure,by comparing the amount,weight and growth rate of these two types of expenditures,analysis of the expenditure structure of local government finances,at the same time,the bias rate is judged by the growth rate of these two types of expenditures,founding that the local governlent's fiscal expenditure structure is biased towards constructive fiscal expenditure,the bias of the local government's fiscal expenditure structure will have many negative effects such as the weakening of the fiscal expenditure multiplier effect,vertical fiscal imbalances is one of the reason.Secondly,use Eyraud&Lusinyan's method to measure the imbalance of vertical finance in China,at the same time,using theoretical models to verify the impact of vertical fiscal imbalances on local government fiscal expenditure structure bias.Thirdly,on the basis of theoretical deduction,it analyzes the realistic path of vertical fiscal imbalance affecting the structure of local government fiscal expenditure.Finally,using the fixed-effect panel model,the empirical analysis of the relationship between vertical fiscal imbalance and local government fiscal expenditure structure bias,the empirical results show that under the general public budget,vertical fiscal imbalance will make the local government fiscal expenditure structure that is partial to constructive fiscal expenditure.From the perspective of sub-regions,in the economically developed regions,the vertical fiscal imbalance is negatively correlated with the constructive fiscal expenditure structure bias,and positively correlated with the demographic fiscal expenditure structure,in economically underdeveloped areas,the opposite is true.Based on the results of theoretical and empirical analysis,suggestions that are made to optimize the structure of local government fiscal expenditures and regulate the fiscal relationship between central and local governments in China.