Research On The Scale Of Fiscal Expenditure Of Sichuan Province

As the key part of the financial macro-control policy, fiscal, expenditure policy plays a more and more important role in changing the mode of economic growth, achieving the goal of economic growth, ensuring social equity and harmony. In this’thesis, on the basis of the previous study on the size of fiscal expenditure in China, we take Sichuan Province for example, intend to use pole placement method in economics, conduct a detailed analysis on the optimal size of fiscal expenditure in Sichuan Province, so as to get the optimal size and provide an indicator for the development of Sichuan province.In this thesis, the first chapter describes literature review. In the second chapter we set out a series of concepts of fiscal expenditure. In the third chapter we conduct a series of empirical analysis. Through the forms and charts, we can get understand of the current size of fiscal expenditure in Sichuan Province, as well as the trends in the structure of fiscal expenditure. Then using three methods, we find that there is a strong correlation between the size of fiscal expenditure and GDP. Following this, we get the conclusion that in Sichuan Province, the absolute size of GDP is the Granger Cause of the size of fiscal expenditure by Grange-Sims Causality Test. In chapter 4, using pole placement theory in Cybernetics, we design the optimal size of fiscal expenditure in two methods, and in the last we get the conclusion (You can get the details in section 2, chapter 4). Take this conclusion to practice, in the writer’s view, the current size is too small to promote economic development. In chapter 5, the writer suggests that in order to achieve rapid economic development, on the basis of a reasonable structure of fiscal expenditure, Sichuan’s government should expand the size of fiscal expenditure.