The Research On Fiscal Policy Of Regulating Urban And Rural Income Distribution Gap In China

Since reform and opening-up, China's economy has developed rapidly and the people's living standard has improved markedly, but, income Gap in China by the Gini coefficient reflects an upward trend in recent years. According to World Bank estimates, the income gap in China in 1978, the Gini coefficient is 0.3, 0.382 in 1988, 0.445 in 1995, 0.458 in 2003, rose to 0.47 in 2005. Which reflect that income gap in China's Gini coefficient has exceeded the international alertness line of 0.4.Experts and scholars at home and abroad generally believe that: Excessive expansion of the social wealth gap will have a negative impact on social stability and economic development. But on a series of issues such as how to understand the income distribution gap between urban and rural residents, how to assess the current income distribution and realize the functions of financial income distribution, how to adjust income distribution gap between urban and rural with fiscal policy to improve income distribution status and so on,there are many discordant opinions. These findings may affect the formulation of national policy direction and influence the future development of the nation's economy.Firstly, this article has carried on the analysis to the income distribution research and discussion of Chinese and foreign economists and thinkers in modern. Obtains the conclusion that it is necessary and reasonable use of fiscal policy in order to the government narrow the income distribution gap. Secondly, this article starting from the actual situation of urban-rural income gap, basing on calendar year figures data published by China Statistical Yearbook since reform and opening-up, combining with the current literature, this thesis made a study on the income gap between urban and rural areas, analyses the changes in the income gap between urban and rural areas and the causes of the formation after China's reform and opening up. Systematically and gave priority to discuss tax policy, corruption, economic transition and fiscal expenditure policy of income gap between urban and rural areas. Thirdly, analyses of the developed country to reduce the urban-rural income distribution gap in the use of fiscal policy, compares with our country present stage expenditure basic situation, obtains the experience which narrow the income gap in Chinese urban and rural residents experience of enlightenment. Finally, on these bases, it pertinently put forward the policy suggestions of the income gap between urban and rural residents: increases spending on agriculture, optimizes the financial expenditure structure, regulate the government's transfer payment system and promote the transfer of rural surplus labor etc, it look forward to narrow the urban-rural income distribution gap implementation in further.