Research Of Choice Of Public Expenditure Items

Public expenditure is a governmental payment action for goods and service which is needed to perform its function and remedy market failure. The development of economy and society all require the support of the public expenditure items, and it is a challenge for government to arrange, select and decide which item is to be developed firstly and which is to be developed later to reach harmonious development of economy, society and human being. So we should do more research on the aspect of decision-making on the public expenditure, and construct a reasonable decision-making mechanism of public expenditure. This article, which is based on the theory of public expenditure, concludes two methods for decision-making on public expenditure items. Then, we have a concrete example, through which we attempt to answer how a government should make its decision when faced to a concrete public expenditure item, and point out the reasonable choice to make a decision on public expenditure in the period of our country's transformation. The article attempts to set forth the question from four aspects: The first part is about the basic theory of public expenditure. Having analyzed the relation between government and market, we deduce the necessity of the public expenditure. Through examining the theories of public expenditure and its general regularity in western economics of different periods, we define the character of the public expenditure as public service, no market profit-seeking and planned. The second part is about two angles of view about of decision-making on public expenditure: value analysis and benefit analysis. In the value analysis, with the help of the theory of fairness and efficiency, we analyze the direction of the public expenditure on realizing social function and approving market efficiency. In the benefit analysis, with the help of the cost-profit analysis, we explain how the government can maximize the profits of the public expenditure. The third part, take the particular function of our government in the...