A Study On The Impact Of Fiscal Decentralization On The Financial Expenditure Behavior In Yunnan Province

The essence of fiscal decentralization is making part of the central government power and property down to the local government, make local government expenditure better satisfy the actual need of local residents, better achieve allocation efficiency, thus achieve the benefit maximization purpose of local fiscal spending. Based on the relevant theoretical overview of fiscal decentralization and local government spending, this paper analyze current situation of China’s fiscal decentralization and Yunnan government expenditure, and test the impact of revenue and expenditure decentralization separately on the structure and scale of local government financial expenditure by empirical testing respectively, finally, according to the results of situation analysis and empirical test, improve Yunnan government spending.Firstly, the paper expounds the main research contents and purpose, and then discuss the effect of fiscal decentralization of local government spending deeply.Secondly, this paper references related theory of the fiscal expenditure changes and fiscal decentralization, explains the related concepts of fiscal expenditure and fiscal decentralization, discusses the necessity of practicing fiscal decentralization and the influence mechanism of fiscal decentralization on local government spending. Again, through researching the development of fiscal decentralization in China, this paper analyzes the present situation of fiscal decentralization, studies the expenditures scale and expenditure structure of Yunnan government from 2005 to 2014, including the trend of local budgetary outlays relative GDP growth, and the trend of each fiscal expenditure project(which are classified by functional properties)’s relative proportion.Finally, Through the empirical analysis of the specific situation of Yunnan province, then analyze the fiscal revenue decentralization and the separation of fiscal expenditure structure in Yunnan province, combining the research analysis, proceeding from China’s national conditions and the actual situation of Yunnan province, puts forward some Suggestions of perfecting the system, including the relationship of the income and dominations and so on.