Sustainability Of Our Public Expenditure

Public finance is the major pathway for government to provide public products, realize the policy goals, and as the principal means of the government to perform macroeconomic control. As the starting point, public finance tries to meet the social public needs, and define the scope of the financial functions, and on this basis to build the government’s fiscal revenue and expenditure system. In recent years, forward guidance by the concept of public finance, our country gradually set up a complete system of public finance. It not only guides the benign interaction between economy and finance, but also gives the public financial characteristics of the new era.The Decision of the CPC Central Committee on Several Important Issues of Comprehensively Deepening Reform passed by the Third Plenum of18th CPC Central Committee puts forward the "financial governance is the basis and important pillar" for the first time. This new positioning not only emphasizes the important leverage of finance in the government’s macroeconomic control, but also puts the finance in the multi-dimensional system of economic, social and political elements, pointing out the direction of the reform and perfection of finance itself. Playing the role of finance, is to optimize the allocation of resources, to maintain market unification, promote social justice and realize the system of national security guarantee in the long period. The reform of the financial system will support and bearing the transformation of economic development mode, and promote the functions of the government and a series of comprehensive reform in society. The fiscal function will play an important role in promoting construction of national management system and modernization of national management ability. The sustainable development of the finance has always been the important content in the research of financial problems. Based on deepening the cognition on fiscal and the historic breakthrough of financial position, the healthy development of finance itself means that the return of the financial nature even is the important premise and supporting of national stability and governance. Sustainable development of finance is a complex systems engineering. It is directly related to the effective supply of public goods, affects the government play its own function, and also involves the development of speed and quality, such as political, economic and social reform. Compared to the financial revenue, financial expenditure is more able to reflect the use of financial funds rationally and the satisfactionegree of the public goods. Therefore, financial expenditure plays an important role in the fiscal sustainable system, directly affects the fiscal sustainability trend. In several factors affecting the fiscal sustainability, this thesis chooses financial expenditure as the starting point. The combination of financial expenditure and fiscal sustainability is the demand of setting up the frame of public finance, and even the only way which must be passed of the financial system reform in china. Through reviewing the evolution of financial system reform since the country’s founding, this thesis summarizes the contribution of financial expenditure to the financial system itself and the social and economic development requirements in the various stages, analyzes the problems in breadth and depth which influence public financial expenditure, and finds a reasonable positioning for financial expenditure in the perspective of the breadth and depth. Based on the international experience, this thesis will explore the path to financial expenditure system reform to promote the sustainable development of Chinese finance.