Poverty Alleviation Effect Of Fiscal Instruments On Relative Poverty In China

Since the beginning of the reform and open policy,China has embarked on a path of socialist poverty alleviation with Chinese characteristics,from relieforientated and development-orientated poverty reduction to targeted poverty alleviation.China's landmark achievements in the history of anti-poverty cannot be achieved without the support and guarantee provided by fiscal system and input.As the foundation and important mainstay of the state governance,fiscal policy will also play an important role in relative poverty alleviation.The Fourth Plenary Session of the 19 th Central Committee of the CPC clearly stated that ‘to consolidate the achievements of poverty alleviation,and to establish long-term mechanisms for eradicating relative poverty'.In this context,it is necessary to re-examine the role and mechanism of the fiscal tools and the entire fiscal system in the governance of relative poverty,which is of great significance for consolidating the achievements of poverty alleviation and constructing a long-term mechanism to alleviate relative poverty.Based on household survey data and provincial fiscal data,this paper evaluates the effect of fiscal policy on relative poverty from the perspective of residents' benefits,and specifically discusses and evaluates the impact of different fiscal tools on relative poverty from the perspective of poverty alleviation mechanism,poverty reduction effect and effectiveness.Therefore,this paper comprehensively uses quantitative economics and econometrics research methods to analyze the effect of fiscal instruments such as public transfers,education and medical services,social security and taxation on relative poverty.This paper is composed of the following eight chapters:Chapter 1 is the introduction,which describes the research background and significance,systematically summarizes the literature review,and introduces the content arrangement and framework system,research methods and technical routes,innovations and shortcomings,so as to fully demonstrate the value of the topic selection,grasp the research trends,and show the basic situation of the paper.Chapter 2 is the fiscal poverty alleviation theory and system background.This chapter defines the concept of relative poverty,elaborates the basic theory of relative poverty and the theory of fiscal poverty alleviation to introduce the importance of fiscal governance of poverty,and introduces the process and institutional background of fiscal poverty alleviation in China.Chapter 3 is description and characteristics of fiscal poverty alleviation situation.This chapter uses AF method,FGT,poverty sensitivity and inequality index to measure and analyze the development status,spatial distribution,characteristics and influencing factors of China's income and multidimensional relative poverty.A descriptive analysis is made of the comparison between the state of fiscal revenue and expenditure and the macro effect of poverty alleviation and the distribution of residents' benefits by using the macro-level economic and social data and micro-level household survey data.In order to form a basic understanding of the research topic,but also to provide data support for the follow-up empirical research.Chapter 4 analyzes the effect of public transfers on relative poverty.From the perspective of micro-subject behavior,this paper explores the impact of cash transfer payment on residents' living standards.Using micro-measurement method,this paper analyzes the influence and mechanism of cash transfers on relative poverty income,consumption and other welfare aspects.Chapter 5 analyzes the effect of basic public services on relative poverty.Taking medical public service policy as an example,this paper uses the effect processing method to identify the welfare effect of the public service policy,quantifies the policy effect of relative poor population from multiple perspectives,and analyzes the heterogeneity effect of medical policy among the relative poor population in different regions,different income classes and different age groups.Chapter 6 analyzes the pro-poverty and redistribution effect of taxation.Based on tax incidence assumptions,In this chapter,the relative poverty tax elasticity of each tax category and its income effect and distribution effect after decomposition are calculated by using non-parametric poverty assessment techniques.The relative poverty elasticity of tax reduction or tax increase of different tax categories is further calculated to investigate the impact of tax reduction or tax increase on relative poverty;At the same time,the redistribution effect of tax is estimated,and the adjustment effect of tax on different types of income or expenditure is investigated according to source decomposition,so as to provide data support and reference basis for tax structure optimization.Chapter 7 analyzes the comprehensive poverty reduction effect and effectiveness of public finance on relative poverty.Under the relative poverty standard set by the three different principles,transfers,basic public services,basic social insurance and taxation are integrated into the unified analysis framework,and anonymous and non-anonymous poverty reduction indicators are used to measure the comprehensive fiscal poverty reduction effect in China,so as to investigate the ability of the current fiscal revenue and expenditure system to reduce relative poverty.Further,from the perspective of optimal poverty reduction effect,the poverty reduction effectiveness index is constructed to measure the effectiveness of fiscal instruments under the poverty reduction target,and the root causes to efficiency loss are analyzed.Chapter 8 is the research conclusion and policy suggestion.This chapter concludes the main research results mentioned above,put forward policy suggestions and research prospects.According to the conclusions,this chapter put forward suggestions to improve and optimize the fiscal policy and its structure,thinking about how to give full play to the role of the fiscal tools in relative poverty governance and how to effectively combine different fiscal tools to reduce inequality and alleviate income and multidimensional relative poverty.The topic of fiscal poverty reduction effect that this paper focuses on is a hot topic with rich research foundation in the field of fiscal redistribution.However,the issue of fiscal contribution in relative poverty governance that this paper focuses on is rarely covered by fiscal redistribution literature at present.The innovation of this paper embodied in three aspects: Firstly,from the perspective of fiscal benefit of relative poor family,considering the static and dynamic individual behavior decision,the paper reveal and assess the current fiscal policy on the relative poverty alleviation mechanism and effect.In this paper,public transfers,public services,taxation and social security are integrated into the unified analysis framework,and the fiscal poverty reduction effect under the relative poverty line determined by three different methods is analyzed.The determination of relative poverty standard in China is discussed from the perspective of financial capacity.Secondly,in terms of research content,relative poverty is taken as the research object to investigate the impact of finance on the living standard of the relative poor population,as well as the consumption welfare effect and poverty reduction effect.finally,in terms of research methods,this paper adopts income ratio method,synthesis method,international relative poverty line and vulnerability adjustment poverty line method,deprivation index method to set the relative poverty standard,and adopts FGT index,multidimensional poverty measurement index,distribution graph and other methods to completely show the outline of China's relative poverty.This paper attempts to measure the unit cost and individual consumption of public services by using the benefit outcome analysis method,which provides a foundation for the subsequent study of poverty reduction effect by incorporating public services into a unified analytical framework.This paper uses the FGT index subject to the principle of anonymity and the non-anonymous fiscal poverty and fiscal gain index to construct the allocation efficiency index and FI/FGP efficiency index,respectively,to comprehensively measure the poverty reduction efficiency of "package" fiscal tools,and discusses the poverty reduction effectiveness of fiscal tools from the perspective of maximum poverty reduction potential.