The Research Of Budgetary Rent-seeking Reason And Result

Rent-Seeking is an activity of spending scarce resources for the pursuit of wealth transfer , yet because of the free of public financial resources, the users of public funds always want to get more for their own number of financial and capital arrangements by rent-seeking approach, this phenomenon exists both abroad and domestic. Budget Rent-seeking may have two aspects, one is that the local government asks central government for rent-seeking, that is, to find ways to get more free regional financial resources as far as possible from the central government; Second, budget rent-seeking within the region, that is use of financial resources within the region, the units that use financial resources within the region, always think of ways to share more from the plate in this region delimit in total. This paper will discuss the causes and consequences of the budget rent-seeking within the region, starting with whether the cost of poverty and government agencies and such factors whether will have a significant impact on the budget rent-seeking; and then we will discuss whether the budget rent-seeking has an significant effect on the relaxation ,budgeting budget and budget relaxation. We will discuss whether we can find the factors that affect the budget rent-seeking with the empirical method and see what kind of impact they will ultimately have on budget rent-seeking, and what consequences these effects will cause.Both in developed and developing countries widely spreads the behavior of rent-seeking, and it has caused impacts and damage varying degrees on the national economy. Therefore, to explore the phenomenon of rent-seeking of financial expenditure and to propose countermeasures for strengthening the financial fund management has a very important theoretical and practical significance on strengthening the financial fund management and promoting the smooth progress of financial reform. Firstly, this paper is based guided on the rent-seeking theory, focusing on analysis of the reasons and influence of the phenomenon and behavior of rent-seeking in the field of budget expenditure. Research shows that government intervention, public agency expenditures and poverty are the root causes of the behavior of rent-seeking concerned with expenditur, while China is currently in a special economic transition period, so the market economic system and the public expenditure framework has yet to be established. At the same time, decisions of governments at all levels also has a large blind, so in fiscal expenditure management are still many loopholes, making a variety of rent-seeking behavior take advantages. The existence of budget rent-seeking brings a series of effects, such as the ratchet effect, relaxation of budget execution, budget slack and so on.This paper attempts to further analysis the causes and consequences of the tbudget rent-seeking with empirical methods, trying to find ways to mitigate the adverse consequences of rent-seeking budget.