Study On The Optimization Of The Fiscal Expenditure Structure Of China

With the transition of the economic system, China's fiscal expenditure structure has correspondingly changed. Now, the adjustment of China's fiscal expenditure structure has made much progress, but there are still many problems to be solved. Nowadays, analyzing the status quo of China's fiscal expenditure structure and seeking for guidelines on optimization is an important issue.The paper analyses the status quo and optimization of China's fiscal expenditure structure. It consists of four parts that can be summarized as follows:Part 1 analyses the factors affecting changes of fiscal expenditure structure. The author mainly analyses four factors: government function, different stage of economic development, total quantity of fiscal expenditure and system transition, which affect variance of items aad its quantity of fiscal expenditure structure.Part 2 makes an analysis on the status quo of China's fiscal expenditure structure. Many issues are involved in it. There is much expenditure on economic construction, but there are a shortage of fiscal capital investments. At the same time, government comparatively expends too much on executive administration and subsidization. Meanwhile, what government inputs on agriculture, social security, science and education are insufficient. In addition, there is a remarkable regional differentials of fiscal expenditure.Part 3 probes into the underlying causes and disadvantages of China's fiscal expenditure structure. Because of the effects created by these factors, such as China's traditional planned economy system, adjustment of government function and regional differential of economic development, the fiscal expenditure structure still falls short. And it brings about negative effects in the following aspects: firstly, it hinders mode's changes of economic growth and fair market competition which improve economic efficiency. Secondly, it influences the society equity and the sustained development.Part 4 puts forward guidelines on optimizing the fiscal expenditure structure.The paper explores optimization of the fiscal expenditure structure from seven aspects: (1) speed up the reform and change the situation that government undertakes too many things, (2) strengthen management of expenditure on state administration to improve government efficiency and standard of public services, (3) strengthen fiscal support of infrastructure construction and agriculture, (4) in addition, increase fiscal inputs on the sustained development and the development through strengthening science and technology, (5) reform and perfect the social security system and correspondingly add expenditure on social security, (6) meanwhile, address the issue of raising expenditure on the development of West China to achieve the balanced development of regional economy, (7) finally, expand fiscal expenditure on public epidemic prevention.This paper also gives further consideration to matters of government function, the influence of system transition on the expenditure structure and pattern of fiscal supporting agriculture after entry of WTO, etc.