Research On The Poverty Reduction Effect Of Fiscal Expenditure On Poverty Alleviation

Whether the rural poor can be lifted out of poverty as scheduled is the key to China's building of a moderately prosperous society in all respects.The mode of poverty alleviation,which is led by the government,is the most prominent feature of poverty alleviation in rural areas of China.This is reflected in the fact that the fiscal expenditure on poverty alleviation plays a leading role in the battle against poverty in China and has achieved remarkable results in poverty reduction.The year 2020 marks the end of the building of a moderately prosperous society in all respects,and it is also a decisive year in the fight against poverty.Therefore,the scientific evaluation of the poverty reduction effect of China's fiscal expenditure on poverty alleviation is very important to improve the use efficiency of fiscal expenditure on poverty alleviation and effectively promote the poverty reduction work in rural areas.This paper takes the policy documents on rural poverty alleviation issued and implemented by the state after the reform and opening up as the background,with the goal of improving the poverty reduction effect of China's fiscal expenditure on poverty alleviation,through normative analysis and empirical analysis,puts forward some policy suggestions to improve the effect of fiscal expenditure on poverty alleviation in China.Firstly,on the basis of reviewing relevant domestic and foreign literature,this paper defines the statistical scope of fiscal expenditure on poverty alleviation.And it also analyzes the related theories of fiscal expenditure on poverty alleviation and rural poverty.The emphasis is laid on the theoretical analysis of fiscal poverty reduction expenditure and poverty reduction.Secondly,it analyzes the current situation and problems of China's fiscal expenditure on poverty alleviation.To review and comment the development process of China's poverty alleviation policy since the reform and opening up in 1978 and the achievements of fiscal expenditure on poverty alleviation in different stages of poverty alleviation.Based on the perspectives of narrow fiscal expenditure on poverty alleviation and broad fiscal expenditure on poverty alleviation,the scale and structure changes of fiscal expenditure on poverty alleviation at the national level and in various provinces and cities were preliminarily analyzed by using relevant statistical data of fiscal expenditure on poverty alleviation from 1980 to 2018 and analyzes the problems existing in the scale and structure of China's fiscal expenditure on poverty alleviation.Then,it makes an empirical analysis of the poverty reduction effect of fiscal expenditure on poverty alleviation in China.Based on the VEC model and the impulse response analysis and variance decomposition,the paper tries to test the poverty reduction effect of the financial expenditure on poverty alleviation.The results show that,in the long run,fiscal poverty alleviation expenditure and economic growth can play a good role in poverty reduction.The incidence of poverty in rural areas will decrease by 0.4 percentage points for every 1% increase in special government expenditures for poverty alleviation,and it played a sustained and stable negative pull effect;for every 1% increase in fiscal expenditure on supporting agriculture,the incidence of poverty in rural areas will decrease by 1.097 percentage points,showing a strong poverty reduction effect;the incidence of poverty in rural areas will decrease by 2.434 percentage points for every 1% increase in people's natural fiscal expenditure,which is the most effective way to reduce poverty;for every 1% increase in economic growth,the incidence of rural poverty decreases by 0.219 percentage points.In the short term,the poverty reduction effect of special government expenditures for poverty alleviation and economic growth is not significant and there is a lag,which are not the Granger causes of rural poverty.However,both people's natural fiscal expenditure and fiscal expenditure on supporting agriculture can play a good role in poverty reduction,which are the Granger causes of rural poverty and become the main driving force for the effective development of rural poverty alleviation work in China.Finally,based on the existing problems of China's fiscal expenditure on poverty alleviation and the results obtained from the empirical part,the research conclusions of this paper are summarized and relevant policy suggestions are put forward.The first is to expand the sources of rural poverty alleviation funds;the second is to optimize the structure of fiscal expenditure on poverty alleviation according to the poverty reduction effect of fiscal expenditure on poverty alleviation;the third is to improve the management system of special government expenditures for poverty alleviation and make them more targeted for the poor in rural areas;the four is to maintain sustained and steady economic growth and achieve economic growth that benefits the poor.