The Study On The Revolution Of The Financial Expenditure's Structure In China

Controlling the structure of financial expenditure is an important task of fiscal policy. The economic and social significance of choosing a right structure is, through government's control, to have influence directly or indirectly on all aspects in society and economy, including the total social supply and demand structure, the industrial structure, the social technologic constitution, aspects in public affairs and the structure of the ability in social total supply in the future, and so on.The present structure of financial expenditure in china is derived from the one under the planned economy and mainly reflects the characteristics of the latter. It shows quite much inconsistency with different public demands in the market economy. From the perspective of macro-structure of financial expenditure, a problem appears that the proportion of financial expenditure to GDP has been keeping at a low level for a long time. From the perspective of horizontal structure of financial expenditure, many unreasonable areas exist. On the one hand, the structure cannot satisfy the basic need of development of drives which must be administered by the government. On the other hand, it provides a large quantity of resources to affairs which in the market economy do not need the government's interference. Viewing the financial expenditure structure vertically, we can find the proportion of central government's expenditure to the total financial expenditure is verysmall, another issue requiring people's attention in the structure reforms. All the above mentioned problems have caused great chaos in finance, such as worsening payments disequilibrium, increasing financial deficit, growing debts and rising risks, which restricts the government's function to be brought into full play and affects the development of other drives in society and economy. As a result, it is an urgent task of the present financial reform and development to make the trend of Chinese financial expenditure clear and find a practical strategy to optimize such a structure.Based on facts, this thesis is trying to portrait the state of Chinese financial expenditure structure as well as its development procedure and to analyze such data. Emphasizing concrete evidence analysis and international comparison, the article studies the reform of China's financial expenditure structure by the use of financial principles and policy analyzing tools.