Research On The Influence Of Fiscal Transparency On The Efficiency Of Local Fiscal Expenditure

As mentioned in the report of the 19 th National Congress of the Communist Party of China,"Establish a comprehensive,standardized and scientific budget system with strong constraints,and fully implement performance management".The focus of the reform of the budget system lies in the openness and transparency of financial budget information,and the key of comprehensive performance management is to improve "efficiency"."Regulations of the people's Republic of China on the disclosure of government information" are just implemented in May 2019.It stipulates the principle of openness that "Openness is the norm and non openness is the exception".The openness and transparency of financial information is the foundation and symbol of establishing a modern financial system.As the link of multiple governance system,encourage the broad participation of the public,and accept the supervision of the public,and promote the improvement of the government's financial expenditure efficiency.However according to the "2018 China financial transparency report" issued by Shanghai University of Finance and Economics,the average level of provincial financial transparency is low.Only 53.49%of the provincial financial information is open,and half of the financial information is still not open.Meanwhile,China's local finance faces the contradiction between the low-speed growth of fiscal revenue and the rigid growth of fiscal expenditure.For a long time,due to the lack of strict institutional constraints and effective supervision,there have been problems such as unbalanced distribution of financial resources,increased financial risks,and frequent cases of financial corruption.So how to use the limited financial resources to adapt to the new situation and improve the efficiency of local financial expenditure is particularly important.Therefore,this paper studies the effect of fiscal transparency on the efficiency of local fiscal expenditure,and puts forward corresponding policy recommendations.This paper first defines the concept of fiscal transparency,defines the scope of the efficiency of local fiscal expenditure,explains the mechanism of fiscal transparency on the efficiency of government fiscal expenditure based on the theory of public goods,public choice,principal-agent and new public management,and puts forward the research hypothesis of "inverted U-type" and "positive U-type" relationship between fiscal transparency and fiscal expenditure efficiency.Secondly,from the national level,provincial level and municipal level comparative analysis of the development of fiscal transparency in China,especially the inter annual and inter regional development of fiscal transparency at the provincial level;and the use of super efficiency SE-DEA model to calculate the comprehensive efficiency of local fiscal expenditure,the use of Malmquist index model to calculate the total factor productivity of local fiscal expenditure The calculated efficiency values are compared and analyzed in different regions.Thirdly,it constructs the linear regression model and the quadratic regression model of the influence of fiscal transparency on the efficiency of local fiscal expenditure.On the basis of ensuring the robustness,it empirically analyzes the correlation between fiscal transparency and the efficiency of local fiscal expenditure,and verifies the hypothesis put forward by the theoretical part.Finally,according to the conclusions of the research,this paper analyzed the main reasons,and put forward the policy suggestions to improve the level of fiscal transparency and the efficiency of local fiscal expenditure.The main conclusions of this study are as follows: first,the transparency of provincial finance in China has been gradually improved,but the overall level is still low,and there are problems such as unstable information disclosure,large regional and inter-regional differences,large differences in sub item evaluation results,and insufficient breadth and depth of the public content.Second,the average comprehensive efficiency of the four types of expenditure of provincial government on education,health care,social security and employment,and urban and rural community affairs is in the state of DEA inefficiency,and the gap between the four types of expenditure comprehensive efficiency regions and regions is large,there are problems such as unreasonable scale and structure of financial expenditure,low level of capital management,waste of financial resources,etc.Third,fiscal transparency has a significant positive effect on the efficiency of local government expenditure on education,health care and urban and rural community affairs.For every 1% increase in fiscal transparency,the efficiency of education expenditure increases by 0.113%,the efficiency of health care expenditure increases by 0.137%,and the efficiency of urban and rural community affairs expenditure increases by 0.278%,which partially verifies the "inverted U-type" relationship hypothesis explained by the theory.Fiscal transparency has the effect of first restraining and then promoting the efficiency of social security and employment expenditure,and the turning point is at the fiscal transparency of 26.47,which verifies the hypothesis of "positive U-type" relationship explained by the theory.In addition,there are regional differences in the impact of fiscal transparency on the efficiency of local fiscal expenditure,and the most significant positive pulling effect of fiscal transparency on the efficiency of local fiscal expenditure is in the eastern region.