Public Expenditure Structure Analysis

Chinese public expenditure structure nowadays generally follows the development trend described in Rostow' s " public expenditure structure exchange theory " . However, compared with the public expenditure structures in other of countries , Chinese public expenditure structure is still unreasonable and less than perfect, administration expenditure and economic construction expenditure are obviously on the high side, while the input is insufficient in such respects as education, hygiene, social security, agriculture etc. The unbalance of public expenditure structure has obviously reduced its disposition benefit, thus greatly influence its function of leading Chinese economy. This text explores such relevant theories as public expenditure structure thoery, government's function theory, public products theory and public choice theory , etc. to analyse the causes which lead to current situation of public expenditure in China . From the conclusion we find that there is a shortcoming in our country' s public expenditure structure . One reason for Chinese current public expenditure structure is due to the country' s economic theory, but the more serious thing is that the transformation of the government' s functions are incomplete and the system of public expenditure is not perfect. For instance: the expansion of government's functions and the solidification of the budget management mode lead to high administration expenditure, the low economic development level of our country and the inmature mechanism of educational input lead to insufficient education expenditure. The current social security system has determined the expenditure for the current situation of social security, and the high expenditure of the infrastructure is determined by the economic development stage and our country' s economic policies.Optimizing the public expenditure structure is demanded by the development of our country' s public finances. At the request of the socialist market economy, changing government' s function conscientiously is the basis of optimizing the public expenditure structure, which could help confirm the range of the public expenditure scientifically and rationally. Distinctly defining the duties and responsibilities of the governments and confirming the range of the public expenditure are the objective bases and the basic points of departure of optimizing the structure of public expenditure. Establishing more perfect budget management system would guarantee the optimization of public expenditure structure . The arrangement of public expenditure through a rational, scientific basis would result in greater public benefit, the progressive optimizing of China' s public expenditure structure could be finally realized. An effective remedy to optimizing the structure of public expenditure would be by setting up a performance budgeting evaluation system. It is not only the evaluation and supervision of the original public expenditure to appraise the system for performance, but it would also make a basis for the reasonable application of the public expenditure in the future.