Research On Efficiency Of Local Financial Expenditure

Under "double-decked" tax federalism, responsibilities and the authority of finance of China's local government hasn't been normalized which leads to non-equivalence between responsibilities and the authority of finance. The financial crisis starting from last year also requests local government to stimulate local economy and social development to keep employment and other aspects stable. Under the limitation of resources, there is very important significance to study efficiency of local financial expenditure. Conducting the research at this moment is very timely and necessary.On base of fully understanding domestic and foreign related research, this article has a study on theory of efficiency of local financial expenditure; it also analyzes expenditure condition of Shandong Province using methods of quantitative analysis and the qualitative analysis.The article analyzes expenditure scale and the structure to evaluate economic efficiency and the social efficiency of local financial expenditure using comprehensive evaluation method and production function method. Obtaining the following conclusions :(1) Financial expenditure total quantity of Shandong Province' is remarkable to promote economic growth. Fiscal policies as one of Macro-control means have played quite vital role in Shandong economic growth. The government expresses its intervention wish to the economics through expenditure. The most superior disbursement scale is about 7.92%.Looking from the data analysis result, the proportion of expenditure to GDP is around 7.92%. Expenditure scale is effective. (2) Expenditure structure: proportion for capital construction expenditure is continuously low. It's lower than the national average level, which will restrict the economical and social development to a certain extent. Total fund quantity for agriculture is insufficient and there are some unreasonable places in agricultural funding structure. Expenditure for science education and cultural and health maintains at the high level, average 29.59%.It stimulates economic development strongly, which coefficient achieves 0.504.And this will play a positive role in sustainable development for economy and society of Shandong. But from the overall tendency, this proportion is downward.The article proposes the following suggestion: (1) enlarge expenditure for science and education and culture and health; (2) continue to enlarge capital construction expenditure and strengthen construction of public facilities; (3) reassign enterprises' enthusiasm to increase the science and technology input; (4) strengthen expenditure for agricultural and rural reconstruction; (5) control the administration expenditure and raise government operating efficiency and service level...