Research On The Promotion Of National Audit For The Optimization Of Local Public Expenditure Structure

Over the years,our national governance goals have been very firm.On the premise of building a conservation-oriented government,we also need to achieve good results in economic development and people’s well-being.Based on the limited total amount of public funds,in order to achieve the governance objectives,the optimization of local governments public expenditure structure has become a key task in national governance.However,local governments have long been criticized for their public expenditure structure bias of "putting more emphasis on production than people’s livelihood" and high administrative costs.This is not consistent with the national development strategy plan of China,which advocates for ensuring people’s livelihood expenditures,and strictly controlling general government expenditures,and optimizing the structure of local government’s public expenditures by using "precious funds for the urgent needs of people’s livelihood".National audit is the cornerstone and important guarantee of national governance,as well as the normalized "physical examination of economic" in national governance.With the goal of ensuring and improving the basic livelihood of the people and safeguarding the people’s interests,the auditing institutions supervise and inspect all expenditures of local governments and related governance matters in accordance with the law,and supervise the expenditure of public funds in full coverage along the budgetary management procedures to ensure that the national policies work.Then,can the national audit correct the bias of "emphasizing production and neglecting people’s livelihood" in the structure of local government’s public expenditure,so as to promote the optimization of the structure of local government’s public expenditure? And what is the path of optimization? Does the national audit works differently in different situations? This paper,hopes to answer the above questions and improve and supplement the existing research,through theoretical analysis and empirical test of the role of national audit in promoting the optimization of local government’s public expenditure structure.Further,the research not only provides valuable reference for ensuring the optimization of local government’s public expenditure structure in accordance with the national governance strategy,but also provides all-round support for the high-quality development of people’s livelihood.Furthermore,it has great practical and theoretical significance to improve the local government’s financial governance ability under the constraint of the limited growth of total public expenditure,which in the current "tight and balanced" environment.Based on this,after summarizing the system background and practical basis of national audit promoting the optimization of local government’s public expenditure structure,this paper firstly analyzes the fiduciary economic responsibility of national audit in supervising the optimization of local government’s public expenditure structure in national governance,by using the theory of public fiduciary economic responsibility and the theory of national audit’s "physical examination of economic",and national audit will correct the mechanism by which the bad structure of public expenditure is biased towards "hidden health risks",through the "physical examination of economic".Secondly,this paper use the theory of public choice and budget decision,analyzes the function path from the dimension of the national audit supervision budget management procedure,and then tests whether the national audit optimizes the "blueprint" which is the public expenditure structure of the budget,and then examines whether the national audit optimizes the "implementation",which is correcting the deviation of expenditure budget and final accounts,so as to promote the optimization of the structure of local government’s public expenditure.Finally,according to the characteristics of national audit and local government’s public expenditure structure optimization,the paper carries out the heterogeneity analysis,which discusses the different effects of national audit in promoting the structure optimization of local government’s public expenditure under different conditions.In order to test the above mechanism and path,this paper selected the data of 30 provinces as samples and used the dynamic panel model to fully consider the stickiness of local public expenditure,and empirically tested the influence direction of national audit on the proportion of people’s livelihood expenditure,maintenance expenditure and productive expenditure in the structure of local government’s public expenditure.To test whether it has corrected the structural bias of "putting more emphasis on production than on people’s livelihood",and whether it has promoted the optimization of the structure of local government’s public expenditure;The paper further empirically examines the path and heterogeneity of national audit in promoting the optimization of local government’s public expenditure structure.The research conclusions of this paper are as follows:First,national audit can promote the optimization of local government’s public expenditure structure.The work of audit increases the proportion of people’s livelihood expenditure in local government’s public expenditure structure and reduces the proportion of maintenance expenditure.In other words,it promotes the optimization of local government’s public expenditure structure in the direction of "saving money for the people" on the whole.In the regions with higher degree of fiscal decentralization,the proportion of productive expenditure is reduced.At the same time,the further analysis results show that the national audit not only optimizes the structure of local government’s public expenditure structure,but also improves the allocation efficiency of public funds.Secondly,from the analysis of the development path of the budget management process,the results show that the national audit promotes the optimization of the structure of local government’s public expenditure in the direction of "saving money for the people".On the one hand,it firstly plays a role through the optimization of the structure of local government’s public expenditure in the budgeting process,that is,the national audit optimizes the budget "blueprint" of the structure of local government’s public expenditure.It ensures that the proportion of people’s livelihood expenditure in public expenditure increases in the budgeting process,and significantly reduces the proportion of budget’s maintenance expenditure.On the other hand,the national audit continues to correct the deviation of budget and final accounts to improve the quality of budget implementation,and further optimizes the structure of local government’s public expenditure.That is to say,the national audit can significantly restrain the deviation of budget and final accounts of people’s livelihood expenditure,and increases the proportion of people’s livelihood expenditure in the structure of local government’s public expenditure by improving the quality of implementation of people’s livelihood expenditure.At the same time,national audit can significantly restrain the deviation of maintenance expenditure budget and final accounts,and reduce the proportion of maintenance expenditure in the public expenditure structure by improving the implementation quality of maintenance expenditure.Thirdly,the results of heterogeneity analysis show that: in the dimension of financial situation,in the regions with higher degree of fiscal decentralization and lower degree of fiscal transparency,the national audit has a more significant role in promoting the optimization of local government’s public expenditure structure towards the direction of "saving money for the people".In terms of environment supervision,in the period after the 18th Congress of the Communist Party of China(CPC),when the institutional environment was stricter,in areas with better media environment,the national audit played a more significant role in promoting the optimization of the structure of local government’s public expenditure in the direction of "saving money for the people".From the economic and population dimension,in the economically developed areas and populated areas,the national audit plays a more significant role in promoting the optimization of the structure of local government’s public expenditure in the direction of "saving money for the people".Combined with the above research contents and conclusions,the contribution of this paper is mainly in the following three aspects:First,this paper deepens the research on the role of state audit.Based on the bias problems in the structure of local government’s public expenditure,this paper sets up a theoretical framework of the national audit promoting the structure of local government’s public expenditure to optimize,and systematically analyzes the mechanism and path of the national audit promoting the structure of local government’s public expenditure to optimize.At the same time,in the empirical test,the paper conducts a complete test of national audit on the proportion of people’s livelihood expenditure,maintenance expenditure and productive expenditure in the structure of local government’s public expenditure,which provides a more comprehensive perspective for the study of the role of national audit.Second,this paper enriches the research on influencing factors of optimizing the structure of local government’s public expenditure.This paper analyzes the optimization of local government’s public expenditure structure from the perspective of institutional constraints,focuses on the existing national audit supervision in national governance,analyzes the optimization function of national audit,which as a governance tool,on the structure of local public expenditure,and expands the choice of local public finance governance tools.Thirdly,this paper provides a theoretical path for the national audit to exert its macro-control ability in the state governance.In this paper,the conclusion that national audit can promote the optimization of local public government’s expenditure structure confirms its important role in macro-control,enriches the value orientation of national audit,and has certain enlightenment for how to further improve the macro-control ability in national governance.