The Study On Finance Of People’s Livelihood

Since the 16th national congress of the CPC, the Party Central Committee of CPC and the State Council have attached great importance to the people-oriented governing idea. From the Three Represents and Scientific Outlook on Development, to China Dream, the governing policy has successfully transformed, namely from the concentration on construction to centering on people’s development. Furthermore, the Third Plenary Session bulletin of the 18th Session of the Central Committee of the Communist Party of China and Resolutions on Several Major Issues Regarding Comprehensively Deepening Reform by the Central Committee of the CPC, which have important influences, put forward many constructive ideas and common views on reform with respect to people’s livelihood. Under this circumstance, the finance of people’s livelihood, one which based on national conditions with Chinese characteristics, has become a focal point of current finance studies.The people’s livelihood finance is based on public finance, and the people-oriented finance of people’s livelihood is to guarantee the people’s basic subsistence, rights and development. It has four features. First, it is a part of public finance. Though it has certain qualities and features of public finance, it is different from public finance. Finance of people’s livelihood concentrates more on people’s basic subsistence, rights and development. The public finance is a more broad idea than the finance of people’s livelihood. Second, the core of finance of people’s livelihood is humanism. The people-oriented finance aims to guarantee people’s subsistence and comprehensive development. From this point of view, the finance of people’s livelihood is the finance of humanism. Third, the target of the finance of people’s livelihood is democracy, through which fairness, justice, and democracy can be achieved. Therefore, the finance of people’s livelihood is also called the finance of democracy. Fourth, the finance of people’s livelihood is carried out mainly through the expenditure on education, medical treatment, social security, employment, house security, environmental protection. The expenditure on people’s livelihood plays a dominant role in the government’s expenditure structure.The focus of this paper is to study on the scale, structure and operation of the people’s livelihood finance expenditure in China. Specifically, on the basis of our country people’s livelihood fiscal expenditure scale and structure, I use the AK production function as the benchmark model, to research the impact of the optimal size and structure of the fiscal expenditure of the people’s livelihood on economic growth by respectively using time series and provincial panel data. After that, this paper puts forward four levels of the fiscal operation of the people’s livelihood, and draws out the relevant conclusions by using the game theory, and analyzes and evaluates the current situation of the fiscal operation levels of China’s livelihood.In order to have a more comprehensive study of the finance of people’s livelihood from the theoretical and practical aspects, this paper also examines the financial history of the United Kingdom and the United States, analyses the national fiscal practices of the two countries, and summarizes the experiences and lessons. Finally, targeted suggestions for mechanism construction of the finance of people’s livelihood are offered.The chapters of this paper are arranged as follows:Chapter 1 is the introduction, generally explaining the background of topic choosing and research significance, domestic and foreign research summary, methods, and structure, as well as the possible innovation and deficiency of this article, setting up a logic structure for this article.Chapter 2 is the theoretical basis, laying the basic theoretical foundation for this article with Marxism’s theory of man’s all-round development, the theory of fairness and justice, theory of public goods, as well as institutional changes and the finance of people’s livelihood.Chapter 3 is the idea and comparison of the finance of people’s livelihood, defining the core concept of this article from the definition of people’s livelihood, its meaning and its extension, for the convenience of the whole article’s discussion.Chapter 4 is the analysis and evaluation of the scale of the people’s livelihood financial expenditure. This chapter first examines the status and problems of people’s livelihood expenditure scale in China, then AK production function as the foundation model, uses the time series and panel data inspection to obtain the optimal scale of China’s people’s livelihood expenditure, lastly, evaluates our country’s fiscal expenditure scale.Chapter 5 is the analysis and evaluation of the structure of the people’s livelihood financial expenses. This chapter first examines the present situation and the problems of our country’s financial expenditure structure, then on the Cobb Douglas production function as the foundation model, uses the time series and panel data inspection, to obtain the influence of each projects in China’s people’s livelihood expenditure on economic growth, lastly, evaluates our country’s fiscal expenditure structure.Chapter 6 is the operating level of China’s livelihood finance. This chapter first proposed the four levels of the people’s livelihood finance operation. Secondly, it studies the status of our country’s financial operation, then through game theory analysis, some conclusions are concluded. Finally, analyzed the reasons of the problems existing in the operation of the people’s livelihood finance in our country.Chapter 7 is the practice investigation of the Britain and American related to people’s livelihood finance, it investigates the two aspects of people’s livelihood of fiscal expenditure scale and structure, at the same time, it studies the relationship between the government and market, the fiscal relationship among the governments and the supply mode of the livelihood services, finally draw some experience and lessons.Chapter 8 is about the thinking of the people’s livelihood financial construction. This chapter is the last part of the paper, and its main content is how to build our livelihood finance. This chapter first proposed our country finance of people’s livelihood construction environment analysis, ideas and principles, and then emphatically proposed the suggestions on optimizing the scale and structure of fiscal expenditure of the the livelihood of the people, coordinating the relation between government and market, the coordination of inter-governmental fiscal relations, and reforming the public service supplying.