Fiscal Equalization, Local Government Goals And Social Expenditures

People's livelihood is the most concern, direct and realistic benefits problem for the public. However, economic growth is the material foundation to solve the problem of people's livelihood. Therefore, in the case of limited financial resources, local government had to find a balance between livelihood improvement and economic growth. The public, when facing livelihood problems, often condemn directly at all levels of governments because they paid attention only to pursue economic growth but ignore livelihood improvement. As to reduce the financial gap between regions, realize the equal basic public service levels, help poverty regions develop the cause of people's livelihood, taxation system reform of China has established the decentralized financial management system and financial equalization system with fiscal transfer as the core. China's economic growth more than 30 years as the country accumulated a great deal of wealth, but, it is so urgent that governments improve people's livelihood more higher requirements than before. So the effect of fiscal equalization system, local government administrative goals and people's livelihood finance relations, on the application and academic has important significance.The article has the following three innovations. The first one is put forward a new way to evaluate local administrative goals. The model includes local administrative goals of economic growth or improve people's livelihood which can be tested with data. The second is to verify the new idea about local administrative goals. From 1995 to 2006, all of China's local governments' goals are to develop the economy of local government. Since 2007, some developed local governments may turn to improve people's livelihood. The third is the people's livelihood finance division to arrange new proposal is put forward. Developed regions productive expenditure financial demand is relatively stable and financial resources relatively abundant, and the backward area productive spending is still strong, people are spending a lack of strong support, the central should be implemented according to regional development status transfer payment differentiation strategy. It should increase general transfer payments in developed regions, strengthen backward area special transfer payments.In particular, the paper mainly divided into three parts. The first part mainly narrative research foundation, mainly includes the research background, significance, goal, content and innovation points, summarizes relevant literature, evaluation of literature, expounded in this paper, the main contribution. The second part is to analyze and solve the problem of research, mainly includes the description and analysis of the Chinese people's livelihood finance, put forward the research question, builds the mathematical model and criteria are derived, using empirical data from 1995 to 2013, using the econometric model test local administrative target, analysis the main characteristic of all kinds of spending, inspected the local people's livelihood finance arrangement with the central subsidies income, the relationship between the indexes of local fiscal support personnel.The third part is chapter 6 that mainly concise related problems of livelihood fiscal arrangement with the test conclusion. Then put forward concrete suggestions to solve these problems. Local people's livelihood finance arrangement problems mainly include the following aspects: the first is central government inspection system to local official deviates from the people's livelihood, so local administrative tend to lead to economic growth. The second is the central and the local people's livelihood accrual match, that lead local governments ignore people's livelihood improvement. The third is the local people's livelihood finance of excessive dependence on the central transfer payments, a place in the affairs of the people's livelihood in the kidnapping of the central government. The fouth is that people's livelihood spending audience imbalance in regional and class. The fifth is macro economic and fiscal revenue situation will affect people's livelihood spending.According to the problems, this paper presents suggestions. The first is that central local officials should establish the livelihood of the people as the core of performance appraisal system. The second is the central shall, according to regional characteristics to divide power and responsibility of the people's livelihood, in the central and western regions the affairs of the people's livelihood of all the central government budget management as a whole. The third is to optimize transfer payment structure and dynamics of the people's livelihood, increase general transfer payment scale of the eastern region, strengthens the Midwest people naturally special transfer payments. The fouth is prioritized social grass-roots people naturally. The fifth is to strengthen HTT markets taxation, increased government bond, and improve the system of society in the field of private donations, as to enrich the fiscal revenues make up spending of the people's livelihood.Finally, the paper gives research conclusion, points out the study limitations. In the part of research sense, paper puts forward three research questions: first, what is the target of local government administrative, and does empirical data support of local government made to improve the livelihood of the people under the goal of optimal arrangement; second, the equalization of public service level of government to improve the livelihood of the people how; third, if there are problems, how should the fiscal system reform. This chapter gives the research conclusion, aiming at the above problems. The last set and data acquisition from the mathematical model research limitations are pointed out.