Research On The Impact Of People’s Livelihood Fiscal Expenditure On The Degree Of Common Prosperity

As an essential requirement of socialism,common prosperity embodies the people’s common aspirations for a better life.In the report of the Party’s 20 National Congress,it is clearly pointed out that“in the new era,on the new journey,we must strive to promote common prosperity of all the people.”This is a long-term historical process,which must be realized on the basis of high-quality development.Indeed,with the great victory of poverty alleviation in China,China has officially entered a new historical stage of pursuing common prosperity.At the same time,however,we are also aware that the urban-rural differences,regional differences and other practical problems are becoming increasingly serious,and the problem of unbalanced and inadequate development remains a daunting one,which has become an important factor impeding the realization of common prosperity.As an important means of national governance,finance’s strategic methods also need to keep pace with the times and be updated in time.Making good use of fiscal tools not only lays the foundation for the Party’s long-term governance,but also highlights the advantages of the socialist system with Chinese characteristics,which will directly affect the process towards common prosperity.In this context,starting from the field of fiscal expenditure,this paper includes the fiscal expenditure on people’s livelihood and its various items(education expenditure,health and medical expenditure,social security and employment expenditure)and common prosperity into the same framework,with the help of the panel data of 31 provincial levels from 2010 to 2020.First of all,on the basis of collating domestic and foreign literature,define the concept of livelihood fiscal expenditure and common prosperity,and start with the theory of income distribution,fiscal expenditure and other theories,theoretically analyze the impact mechanism of various livelihood fiscal expenditure on common prosperity.Secondly,this paper starts with the concept of common prosperity and establishes the indicator system of common prosperity,which provides the basis for the subsequent empirical test.Finally,the fixed effect model,quantile model and intermediary effect model are used for empirical analysis.The influence effect is further examined.Based on the above analysis,the following conclusions can be drawn:(1)The fiscal expenditure on people’s livelihood and all kinds of expenditure have a positive and significant impact on common prosperity,overall prosperity and shared prosperity.It shows that the expansion of various expenditures is conducive to the promotion of common prosperity.(2)With different levels of common prosperity,people’s livelihood fiscal expenditures and various expenditures have different effects on common prosperity.With different levels of common prosperity,people’s livelihood fiscal expenditure and various expenditures have different effects on common prosperity.When the level of common prosperity is low(0-20%),the impact of people’s livelihood fiscal expenditure and various expenditures on common prosperity will increase with the increase of the level of common prosperity.When it exceeds 20%,its positive promotion effect gradually decreases.It shows that the lower the level of common prosperity of a place,the more efforts should be made to increase various expenditures.(3)The people’s livelihood fiscal expenditure increases the realization of common prosperity by promoting per capita disposable income and narrowing the urban-rural income gap.There is an intermediary effect between per capita disposable income and urban-rural income gap.The direct effect of the urban-rural income gap accounted for 86.5%,the indirect effect accounted for 13.5%,it is 40.5% that the direct effect of per capita disposable income accounted,and the indirect effect accounted for59.5%,all of which were partially mediated.There is also an mediating effect in the impact of private expenditure on overall prosperity and shared prosperity.Finally,this paper gives advice from several aspects according to the actual situation:First,properly expand the scale of financial expenditure for people’s livelihood.Second,we adopted targeted policies in light of local conditions.Third,we will improve the education expenditure system.Fourth,improve the medical security management system.Fifth,we will improve the social security spending system.Sixth,improve the government assessment and oversight mechanism.Seventh,accelerate the construction of a new type of urbanization.On the raising of ensuring and improving people’s livelihood,we hope to enhance common prosperity and finally achieve common prosperity for all.This paper has the following innovation points: first,it expands the research field.It is the first time to directly establish the connection between the expenditure on people’s livelihood and common prosperity,and investigate the influence mechanism and effect of the two,which makes the study of common prosperity in the financial field more abundant.Second,innovative research methods.In addition to the benchmark panel regression model,quantile regression model is also innovatively introduced to explore the influence differences at different levels of common prosperity.The combination of this method and theory has practical significance.Third,multidimensional construction index.In terms of the construction of the index system,this paper not only constructs the overall comprehensive index of common prosperity,but also expands to two sub-dimensions,focuses on the analysis of the influence effect strictly around the connotation of common prosperity,so as to put forward targeted policy suggestions.