A Study On The Fiscal Expenditure Structure Of County-Level Local Government And Its Effects

Local finance is the important composition of financial system which is graded. Recently, with extending and seeping gradually during founding service government, exploring local finance begins to turn its steps to finance expense and its framework that was revenue (and its proportion in GDP) previously. At the same time, the puzzledom of the finance of counties and towns is obvious to all, and that how to use limited revenue and let it in public service provided by government will have realistic significance to investigating local finance and its structure; and that how much revenue be needed and the means of the revenue's use will also have academic significance to investigating local finance and its structure. This paper takes District X, belongs to Hubei Province and the seedbed of "X Political Reform" and "Government Purchase Service", as an example, then hunts after functions, which is brought into play by finance expense structure of county-level government, and problems in being via describing and commenting finance expense structure of X District( 1998-2007); simultaneity, seeks the effect to finance expense structure of county-level government by selecting two angles: one is hoi polloi's requirement which is from bottom up, the other is performance examination of government which is from the top down, there are several main findings by analyzing: 1 .The extent that fiscal expenditure per person influences the citizen controlled income is higher than the extent that the former influences the peasant pure income; and that, this status quo, which works the gap and its enlargement between the citizen' income and the peasant', is possibly one of the uppermost influencing elements. 2. Theoretically, it is propitious to increase GDP per person by increasing the expenditure of economic construction and controlling even curtailing the expenditure of basal public services administration, however, the fact is to keep the increase of GDP per person, as well as the expenditure of basal public service, and it will be an endless and difficult process that controlling even curtailing the expenditure of administration. 3. GDP per person and the level of urbanization are mainly influenced by fiscal expenditure, the influence of extra-budgetary expenditure is little even naught.