Research On The Function And Problems Of Government Investment Based On The Concept Of Equalization Of Public Services

Under background condition"To expand domestic demand and guarantee the growth"in our country, it is a relatively weak research subject to achieve the equalization of basic public services depending on the support from the government investment. In fact, the home research on government investment mainly focuses on how to expand domestic demand which belongs to the efficiency problem. But the research on promoting the goal of equalization of basic public services is not enough. Obviously, government investment's function is multiple, but the government investment function's emphasis point should be different in different nations and the different historical period. Based on the above understand, and considering our country concrete national condition, this article carries on a more comprehensive discussion in the equalization of basic public services from the theory to the practice.This article research content divides into four part altogether and five chapters approximately.The first part is the first chapter: Introduction. It mainly elaborated the background of the question proposes, the literature summary, the paper's structure and method, the innovation and deficiency.The second part is theoretical analysis, namely the second chapter. Firstly it discusses the essential theory of the equality of basic public services. It focuses the intrinsic implication of"equalization"and the question to assurance the value orientation correctly, then trying to analyze its measurables and the methods. Secondly it elaborates the elementary theory about government, including the government investment connotation, goal and scope. Lastly it discusses the relation with the equality of basic public services. The public finance is the foundation to realize the equality of public services, and the government investment is an important tool which makes public finance return"public". So this chapter tries to the relation through the junction namely public finance.The third part is the empirical study part, altogether two chapters, namely the third and fourth chapter. The research of third chapter is the influence of Central authorities invests to the equalization of basic public services. This chapter has selected two cases namely the Four trillion government investment plan and the West Development strategy investment for the object of study. Through the analysis, in current development stage, central level's investment mainly concentrates in the large-scale investment projects in infrastructure construction. Simultaneously, it also disposes the resources reasonably to speed up those areas which fall behind. Then it can reduce the development gap between different zones. The fourth chapter's research focuses on the effect to the equalization of basic public services from local government investment. First part is an analysis about the equalization of basic public services among areas. It based on the financial decentralization system. And it takes nation three regional representatives province Zhejiang, Hubei, Yunnan as research subjects and selects the key public services and the expenditure per capita as the objects for our study. After measuring the coefficient of variation of each index, we can get some results. It exposes that our investment structure and size of local government in large part influenced by fiscal decentralization, especially the impact of tax system reform. In the context of fiscal decentralization, local governments prefer the projects with much economic interest. As a result, firstly, it reduces inequalities in basic public services among different regions, secondly, even if the level of public services in some little difference, but it is at a low level. After that, we change the attention to the rural areas. This section takes Zhejiang Province's situation as an example, concentrating on the analysis from two directions. One is the government investment affects the countryside residents'income then affecting their self-support capabilities. Because the government finances the urban development and the investment construction, the remote districts' construction is at the lag condition for a long time, making the countryside development difficult. The other is if the government investment provides the countryside directly the basic services, it can raise the rural resident's living standard. But in fact, the situation is not satisfying, especially in medical, social security aspect, needing government's support vigorously.The fourth part is the last part, namely the fifth chapter, it gives some countermeasures corresponding to the above problems. Firstly, The government should increase the public welfare investment moderately, then clearing about the government's authority of all levels. Secondly, It is necessary to adjust the government investments'structure to promote the equalization. Finally, The supervision to government investment is needed to be perfected, then improving the equalization policy achievements.