The Study Of The Administrative Expenses Based On The Public Choice Theory

When our society moves into a new development stage, the profound conflict of the administration system reform is exposed gradually. In order to break through the conflicts, the administration system reform needs to innovate the theory and build a new frame.In the current, the conflict between public demand growth and public goods shortage is the main conflict in our society. To resolve the conflict validly requires the government transformation, the public service function should be developed continuously and become the core function. The aggrandizement of the public service function needs to change the structure of finance expenditure, therefore bring out the higher demand for administrative expenses. Based on the public choice theory and government transformation theory, the paper analyses the current situation and reason of the administrative expenses, and brings forward the relative suggestions in the end.The ultimate aim of the administrative expenses is to improve the social welfare, not only the economic growth. In order to scale the social welfare, the paper designs a social welfare synthetic index. Then the paper uses a non-linear model to study the relation between the administrative expenses and the social welfare synthetic index. The experimental result indicates that there is a signifcant "Amey curse" between social welfare synthetic index and government expenditure, the ratio of administrative expenses to government expenditure is too high, the ratio of finance expenditure to GDP is not enough, the central government expenditure is too low, the local government expenditure is too much, it means that the state spends superabundant government expenditure on economic construction and insufficient expenditure on public service.The paper analyses the reason of the administration expenses growth, then put forwards relative supporting measures. First, we must treat rightly the relation between the central government and local government, and define afresh and mate the responsibility and capital between the central government and local government, which supports a system guarantee for the administration expenses reform. Secondly, we should push the capital and tax institution reform, and make a major breakthrough on the public budget, capital management and tax. Thirdly, we should build and perfect the supervision institution of administration expenses. In the end, we should enhance government system build, such as government affairs public system, administration responsible system, wealth public system, investment examining and approving system, etc.