Structural Optimization Study For Fiscal Expenditure Of Local Government

With the deepening of financial system reform , as the main means of macroeconomic control of local government,the proportion of local fiscal expenditure in total expenditure is gradually increasing. The structure of local fiscal expenditure will have a direct bearing on the local economic efficiency. Adjusting and optimizing the structure of local fiscal expenditure becomes an important and urgent task.This paper uses theoretical and empirical methods to study the optimization of local fiscal expenditure structure. First, this paper establishes a simple theoretical model on the basis of Barro's economic growth theory. And then achieve the theoretical optimal structure of fiscal expenditure through the theoretical model. It shows that the optimal expenditure is proportional to their output's flexibility. And then combines with the actual situation in China to empirical analysis the development of 31 provincial and municipal structure of fiscal expenditure. The results show that the structure of local fiscal expenditure to economic growth has had a significant impact. The economic benefits of local fiscal expenditure structure exists regional differences. Empirical results show that China's local fiscal expenditure structure is irrational. Local fiscal expenditure structure stills need to optimize. Last, the paper advances policy recommendations to optimize the structure of China's local fiscal expenditure.①To speed up the transformation of local government functions and adjust the scope of local fiscal expenditure. China's local fiscal expenditure exist the"off side"and"omission". Therefore, in order to achieve local optimization of the structure of financial expenditure, we must correctly identify the scope of local fiscal expenditure, combined with the actual local situation to arrange local fiscal expenditure.②To optimize the structure of local fiscal expenditure structure. The following aspects need to be adjusted from the empirical research. To optimize the internal structure of the local economic construction expenditure; To increase agriculture expenditure and the expenditure of science and education, cultural, health; Further reduce costs of local administration to improve its efficiency.③To strengthen local financial supervision and improve the efficiency of local fiscal expenditure. The low efficiency of local fiscal expenditure cause low flexibility of local fiscal expenditure and low economically inefficient. So, we need to strengthen supervision of local fiscal expenditure to improve the efficiency of local fiscal expenditure.④To attend the regional differences when adjusting the structure of expenditures. Empirical analysis shows that the economic benefits of local fiscal expenditure structure exists regional differences. Therefore, in carrying out adjustment of local fiscal expenditure structure, it is important to give full consideration to the actual situation in various regions.