Financial Expenditure Structure And Rural Poverty Reduction

China has entered the period of decisive victory in building a well-off society in an all-round way.Letting the poor and poverty-stricken areas join the whole country to enter a comprehensive well-off society is a new task and new requirement for poverty alleviation at this stage.Due to the constraints of specific natural geographical environment,Gansu Province has a harsh natural environment and outstanding ecological and environmental problems.In the country’s new round of poverty alleviation planning,there are 43 state-level poverty alleviation work counties and 58 countries in Gansu Province.In recent years,with the economic development of Gansu Province,although the incidence of poverty in Gansu Province has been decreasing year by year,the rate of poverty reduction has shown a downward trend.How to allocate resources more effectively and reduce poverty to a greater extent is an important issue facing the Gansu provincial government.Under the above background,this paper mainly studies the impact of Gansu’s fiscal expenditure structure on poverty reduction in rural areas.In order to explore the relationship between fiscal expenditure structure and poverty reduction,this paper divides fiscal expenditure into four aspects: agriculture,forestry and water affairs expenditure,social security and employment expenditure,education and science and technology expenditure,and capital construction expenditure.Firstly,the Gansu Provincial Bureau of Statistics survey data was used to describe the current poverty situation and financial expenditures in Gansu Province.Then,the theoretical framework of economic growth,fiscal expenditure structure and poverty reduction is constructed.Based on the previous theories,we have constructed five equations including the rural poverty occurrence equation,the forestry and forestry water expenditure decision equation,the social security and employment expenditure decision equation,the education and science and technology expenditure decision equation,and the capital expenditure expenditure decision equation.The simultaneous equation model is used to explore the relationship between fiscal expenditure structure and poverty.The panel data of 25 poverty-stricken counties in Gansu Province from 2010 to 2017 were used to perform single-equation two-stage least squares estimation on the model,and the empirical results were analyzed,and then effective suggestions were put forward.According to the empirical results,the paper draws the following main conclusions:(1)Agriculture,forestry and water affairs expenditure,social security and employment expenditure and capital construction expenditure have significant effects on poverty alleviation,and education and science and technology expenditures have no significant effect on poverty reduction.The poverty alleviation effects of various fiscal expenditures are ranked as: social security and employment expenditures > capital construction expenditures > agriculture,forestry and water affairs expenditures.(2)Improving the income of residents in poverty-stricken areas is the best way to reduce poverty.Economic growth has an important impact on poverty reduction.Agriculture is an important area of poverty reduction strategy.(3)Increasing total fiscal expenditure,increasing the scale of various fiscal expenditures,and optimizing the structure of fiscal expenditures have an important impact on poverty-stricken areas.