Research On The Influence Of Financial Pressure And Promotion Incentive On The Efficiency Of Financial Expenditure

The foundation of governance lies in finance,and the Third Plenary Session of the 18 th Central Committee pointed out that finance is the foundation and important pillar of national governance,and finance provides the financial basis for the government to exercise public service functions,and also provides institutional guarantee for the government to carry out social governance and achieve long-term national stability.However,after China’s tax-sharing reform,local governments generally face greater financial pressure due to the mismatch between financial and administrative powers.Meanwhile,under the influence of promotion tournaments,local government officials vigorously develop local economy in order to create political achievements,which means they need more financial expenditures for economic construction,which further deepens the contradiction between supply and demand of financial resources.In addition,the lack of attention to the management of fiscal expenditures by local governments in China has led to the long-standing problem of "emphasis on distribution rather than management" in the financial sector,which has led to a large amount of inefficient fiscal expenditures and thus low efficiency in the use of financial resources.Against this background,a comprehensive and in-depth study of fiscal issues is not only a task given to us in the new era,but also an inevitable requirement to promote the modernization of the national governance system and governance capacity.Using data related to local government finance in China from 2009 to 2019,this paper explores the relationship between local government fiscal expenditure efficiency and its influencing factors in the context of Chinese-style fiscal decentralization.This paper first measures the static and dynamic efficiency of local fiscal expenditures in China using data envelopment analysis(DEA) and Malmquist index analysis,and deeply explores their spatial and temporal divergence and change characteristics.Secondly,using the DEA efficiency measurement results as the dependent variable,the Tobit model is used to further analyze the impact of local governments on fiscal expenditure efficiency when they are under fiscal pressure and when local government officials are driven by promotion incentives.Again,this paper also verifies the role of the budget performance management reform implemented in recent years in alleviating fiscal pressure and improving fiscal expenditure efficiency;finally,corresponding countermeasure suggestions are proposed based on the empirical analysis results in order to provide reference for local governments to regulate fiscal expenditure behavior,optimize fiscal expenditure structure,and improve fiscal expenditure efficiency.