Empirical Research On The Relations Of Fiscal Expenditure Structure And Income Gaps Between Rural And Urban Areas

As the reform and opening-up deepens continuously and the economy develops rapidly, the traditional egalitarian distribution system has gradually been replaced by the diversified income distribution system, and the income channels of residents are increasingly diversified. However, influenced by the system, own endowment, economic environment and other factors, the income of the farmers in our province grow slowly in recent years, and the income gap between urban and rural residents is in the growing trend. In the initial stage of economic development, a degree of income disparity is inevitable, and even beneficial to economic development, but if the gap is too big to control, it will have a negative impact on economic development and social stability. So how to reduce the income gap between urban and rural areas can not be evaded in building a well-off society.The deep-seated reasons of the urban-rural income gap are the low-income of the farmers and the slow rate of growth. In essence, it is the result of the dual structure of the system changes and institutional arrangements. However, as an important means of regulating income, whether or how the financial expenditure functions play a role in the extent is the focus of the study.This thesis begins from the structure of financial expenditure and takes Shandong Province as an example. Firstly, this thesis elaborates on the issue from two aspects of the income gap between urban and rural areas: First, the existing analysis of the data, and visual description of the status quo of income gap between urban and rural residents in Shandong Province, suggesting the changing of the income gap between the urban and rural, and makes a comparison the income gap between urban and rural areas in our province and throughout the country. The conclusion is: the income gap between urban and rural in our province is in an expanding trend, and the urban and rural residents gain lower income than the average level of China, but the trends are basically the same. Second, this thesis analyzes the formation of reasons of the income gap between urban and rural residents from the policy system level, natural endowments, market-oriented view of the methods of distribution, etc. Secondly, this thesis analyzes the trend of changes over the years from both the total fiscal expenditure and structure in Shandong Province and finds that with the growth of financial expenditure, the income gap between urban and rural areas has not demonstrated the inevitable downward trend, which is on this bold relations theory assumed that an attempt to describe the relationship between the two that, while the financial expenditure considerably from year to year growth. However, the financial expenditure structure of defects results in the expenditure structure and unreasonable, excessive tilt to the city. And the inadequate attention to the three rural issues results in a relatively slow growth in the income of the farmers, thus widening and intensification of the urban-rural income gap. This thesis establishes a regression model and makes empirical tests to confirm the existence and reasonability of this theory.Finally, this thesis puts forward the policies and proposals of adjusting the structure of financial expenditure and narrowing the income gap between urban and rural residents from two aspects. Firstly, the thesis breaks the binary system of the shackles of economic management, and re-examine the relationship between the urban and rural areas, and narrow the urban-rural income gap clearing system disorders; Secondly, optimizing the structure of financial expenditure so that the financial expenditures truly play its rightful role. Furthermore, increasing fiscal spending and improving the survival of farmers' production environment and their quality so as to enhance and strengthen the ability to raise revenue.