Efficiency Evaluation Of The Fiscal Expenditure On People’s Livelihood

China has experienced 30 years’ reform and openness, and the rapid economic development has established a complete industrial system, the economic aggregate and achievements in economic development attract wordwide attention. But the intensive development and overuse of resources has made the economic and social development imbalanced, environmental pollution, lack of social and moral justice, social security imperfect, unequal access to education and so on, has accumulated a lot of social problems. People’s livelihood issues have become the hot topics of common concern of the government, the public and the academic community.On the surface of it, livelihood issues may be education problem, health care problem, environmental pollution problem, social security problem, culture problem and other issues, but under careful excavation and systematic observation, you will find out they have inner links. They are ultimate performance of the imbalance of government policy, and the concept of institutional development. Thus piecemeal fix measure does not bring fundamental improvements, just like health care reform, education reform, environmental pollution control as before.The theoretical basis of this article is: as about the supply of public livelihood goods, the major supplier should be the government still, particularly financie. social functions and in particular functions of improving the people’s livelihood should be the main functions of China government today. In contrast, Chinese economic development has come to a stage that fiscal intervention for economic growth should weaken and the role in the people’s livelihood should be strengthened. In terms of people’s livelihood provider of public goods, although I also agree that more social participation should be encouraged, but because of the special nature of the people’s livelihood in the field of public goods, public finance definitely should not be absence.Another notable phenomenon is that China’s economic development has entered a "new normal", restructuring has become key words, even the high-speed double-digit economic growth can not be sustained in the next period of time. Past "tax bonus" that rapid economic growth has been a steady stream of revenue gone, it is difficult to guarantee tax revenue growth, and the fiscal expenditure is on a higher requirement because of social development. So how to solve the contradiction between the growing demands in people’s livelihood and insufficient financial resources? Improvement of the fiscal efficiency can become part of the solution.Based on this understanding, we propose a topic that evaluation of the efficiency of spending on the people’s livelihood. This topic has several meanings: first, to solve the problem of lack of financial resources, improving the efficiency of fiscal spending is the key; second, the fiscal expenditure structure must be tilted to the livelihood of the people in the field, in order to address the current needs of the growing people’s livelihood; third, the providing of livelihood is a is an essential measure of fiscal expenditure performance. Thus this paper issues criteria and evaluation methods of financial efficiency evaluation of people’s livelihood, and conducts empirical research.This paper attempts to answer three related questions:First, this paper reviews the economic theory and financial theory for the "people’s livelihood" issues, clearly points out the property of "people’s livelihood" in finance. Combined with Chinese context in the current economic and social development, This artical repositions the functions of public finance for the livelihood functions, and deepen the concept of "people’s livelihood finance" theory and its connotation.Second, the empirical study of people’s livelihood fiscal policy. This article will see the people’s livelihood fiscal policy as input-output system that invests in financial resources and outputs the livelihood public goods. Once this system has been established you can use the model of Engineering efficiency evaluation to evaluate the efficiency of livelihood, and use statistical measurement tools to measure the performance of local government policy. Measurement of financial livelihood efficiency is a huge system, the choice of indicators and evaluation methods for the evaluation will has a significant impact on the results. Combined with the existing evaluation methods and aim of this study, this article chooses livelihood index with the objective statistical measurement method, the indicator system is constructed. This article compares the financial livelihood efficiency of 30 local government areas in 2013, and through the empirical analysis, factors affecting the financial livelihood have been recognized. And these factors will be helpful for local governments to develop policies in improving policy performance.Third, the recent changes in the fiscal statistics of relatively large diameter, from the specific statistical financial budget and extra-budgetary consolidation into a comprehensive budget reform, gave the introduction of Minsheng Financial dynamic efficiency evaluation time sequence information difficult. This article carefully selected financial indicators as well as the livelihood of the most representative in several areas, careful verification, using the 2007-2011 five years panel data for dynamic efficiency evaluation, with a view of the financial efficiency of our people’s livelihood provide some basis for comparison between the value of the year. Finally, on the basis of empirical analysis, the author gives the local government to improve the overall efficiency of the livelihood fiscal policy recommendations.This article uses the following specific empirical methods:First, factor analysis. Evaluation of Financial livelihood efficiency, whether static or dynamic is based on certain index. This paper defines the concept of “people’s livelihood finance”, namely the field of the financial livelihood. Then in a few areas of financial livelihood policy, this article select a representative number of indicators. Finally, under the use of factors, it analysis linear combination of these indicators, to the role of dimensionality reduction, laid the foundation for the efficiency evaluation of financial livelihood policy.Second, DEA two-step method. First, the introduction of environmental undesirable output factors, the use of undesired output generalizes data envelopment analysis(DEA), draws financial efficiency index of fiscal livelihood policy.The second step, regression analysis, the effects of the factors on this financial efficiency. Due to the number of livelihood fiscal efficiency is greater than zero, showing truncated sample characteristics, so it is restricted equation model for continuous variables, and therefore this article uses Tobit model to analyse.Third, the use of malmquist index, calculats dynamic efficiency of financial efficiency on people’s livelihood. Provincial livelihood policy of local government is fully evaluated and sorted out. So we can see how the fiscal expenditure can be quantitatively and continuously optimized, and eventually improves the efficiency. This conclusion will guide decision-makers to make right decisions.