Research On The Impact Of Financial Expenditure On People’s Livelihood On Rural Household Consumption

Since the reform and opening up,compared with the rapid development of economic construction,people’s livelihood is still the weak point of China’s social development,such as the widening gap between the rich and the poor,the shortage of medical resources,the uneven distribution of educational resources,and the lack of social security.Especially in the context of the era of common prosperity,these dilemmas need to be solved urgently.At the same time,under the impact of many contradictions at home and abroad,intensified fluctuations in the global financial market,tighter constraints on resource factors,and the COVID-19,China’s economy is facing the "triple pressure" of shrinking demand,supply shocks,and weakening expectations.Therefore,we must strengthen the supporting role of consumption in economic development.The most important part of fiscal expenditure is livelihood related fiscal expenditure,which can not only enhance residents’ consumption expectations and promote their willingness to consume,but also improve the level of people’s livelihood and accelerate the construction of people’s livelihoods.As one of the major agricultural provinces in China,Anhui Province has a large proportion of rural population in the total population.Taking Anhui Province as an example,it is very representative to study the impact of financial livelihood expenditure on rural household consumption,which is conducive to the formation of a new development pattern with domestic systemic circulation as the main body and domestic and international double cycle.Under the background of current "double cycle" new development pattern,this thesis puts forward the problems to be studied from the Angle of promoting consumption and then drawing domestic demand in our country.Before expanding the econometric analysis of this article,based on the preventive savings theory,the residents’ consumption theory and financial people’s livelihood expenditure theory,the influence mechanism of people’s livelihood expenditure on rural residents’ household consumption is deeply analyzed;Then,using the relevant data of Anhui Province from 2011 to 2020,the GMM model is used to test whether the financial expenditure on people’s livelihood in Anhui Province has a positive and significant impact on the consumption level and consumption structure of rural households.And through the heterogeneous analysis reveals the impact of all kinds of financial expenditure on the livelihood of rural residents and the impact of livelihood expenditure on the specific consumption of rural residents.The results show that the financial expenditure on people’s livelihood in Anhui Province has a significant promoting effect on the consumption of rural households.Based on the analysis of the impact of the expenditure on people’s livelihood on the consumption expenditure of rural households,the fiscal expenditure on people’s livelihood has a significant positive impact on the expenditure on food,tobacco,alcohol,housing,education,culture and entertainment of rural households in Anhui,while the fiscal expenditure on people’s livelihood has a significant negative impact on the expenditure on daily necessities and services of rural households.From the impact of all kinds of fiscal expenditure on people’s livelihood on rural household consumption,social security and employment has a significant "crowding in effect" on rural household consumption.It can be found that housing security expenditure and medical and health expenditure have no significant impact on the household consumption of rural residents in Anhui Province.On the contrary,education expenditure has a significant inhibitory effect on the consumption structure of rural households,which indicates that education expenditure has a significant "crowding out effect" on the consumption structure of rural households in Anhui Province.According to the research conclusions,specific suggestions are put forward from the aspects of improving the consumption structure and level of rural residents in Anhui province: continue to increase the scale of financial expenditure on people’s livelihood,promote the upgrading of the consumption structure of rural residents,adjust and optimize the structure of financial expenditure on people’s livelihood.