Research On The Impact Of Livelihood Fiscal Expenditure On The Income Gap Between Urban And Rural Residents In Inner Mongolia

With the rapid development of China’s economy and the continuous promotion of reform,China has achieved its first centenary goal and is firmly walking on the "road to catching up" with the second centenary goal.In the process of striding towards common prosperity,we should adhere to the integrated development of urban and rural areas,and smooth the flow of urban and rural factors.However,the income gap between urban and rural residents has hindered the development of common prosperity and urban and rural integration.Now the income gap between urban and rural residents in Inner Mongolia still exists,and the macro regulation of the government is promising,which requires the government to solve the above problems with practical means.The dreams of a moderately prosperous society and a strong country are ultimately the happiness dreams of the common people.We must always safeguard the fundamental interests of the vast majority of the people.The government provides basic guarantees for low-income groups through income redistribution,such as increasing income,strengthening education,ensuring health,and promoting employment.We have achieved fair distribution of social income,narrowed the income gap between urban and rural residents,and built a harmonious and beautiful socio-economic environment,So as to lay the foundation for the realization of the goal of common prosperity.Based on the absorption and reference of existing research results,this article first analyzes the transmission mechanism of people’s livelihood fiscal expenditure on income inequality,and explains the impact of education,healthcare,social security,and employment expenditure on income inequality.Secondly,a specific analysis was conducted on the scale of fiscal expenditure in Inner Mongolia,from absolute monetary volume to changes in relative growth rate and proportion,and then to the marginal propensity and elasticity coefficient of livelihood fiscal expenditure.Divide the fiscal expenditure structure into sources to study the current situation of the three main livelihood fiscal expenditure structures in Inner Mongolia;Afterwards,by comparing with the national income gap,the focus is on introducing the historical evolution and current situation of the income gap between urban and rural residents in Inner Mongolia.In the empirical analysis,through the construction of dynamic panel data and spatial weight matrix,spatial autocorrelation analysis is carried out,and spatial Durbin model(SDM)double fixed effect analysis is used to explain the impact of livelihood fiscal expenditure on the income gap between urban and rural residents.The conclusion drawn in this article is that the impact of different livelihood expenditures on the income gap between urban and rural residents varies.Firstly,there is a spatial positive correlation between the financial expenditure on people’s livelihood in the non alliance cities of Inner Mongolia and the income gap between urban and rural residents in various regions of Inner Mongolia.Secondly,based on the decomposition of spatial spillover effects,it can be concluded that the increase in the scale of livelihood financial expenditure,medical and health expenditure,social security and employment expenditure in Inner Mongolia’s non alliance cities can not only narrow the income gap between urban and rural residents in the local area,but also bring positive external effects to the surrounding alliance cities,which will play a model role in radiating and driving the neighboring areas,thereby narrowing the urban-rural income gap in the adjacent areas.Thirdly,the education expenditure coefficient in Inner Mongolia is positive.On the one hand,the education expenditure in this region will expand the income gap between urban and rural areas in the region,and on the other hand,it will also cause unfair income distribution between neighboring cities and rural areas.Fourthly,in the control variables,the coefficients of economic development level and urbanization level are both negative,indicating that a region with rapid economic development and continuous urbanization has a higher ability and level to improve income distribution in the region,thereby narrowing the income gap.Therefore,based on the above analysis results,feasible measures are proposed to narrow the urban-rural income gap in education,healthcare,and social security.