Local Fiscal Expenditure Relative Efficiency And Its Influencing Factors

Fiscal expenditure efficiency refers to the relative relationship between inputs and outputs. It reflects the level of management and technology on the financial fund. The study on the efficiency of fiscal expenditure is very useful. For a long time, despite on the evaluation of the efficiency of fiscal spending, the central and local governments not only have taken certain measures, but also achieved some success, the use of fiscal funds as public resources, however, is still generally believed that efficiency is not high。Reports that Reported the use of finances is not standardized and inefficient are also often found in newspapers. This Situation not only makes the credibility of the Government subject to certain damages, but also makes local government funds did not play its due role, which restricts the government’s macro-control ability to play. To improve the efficiency of local government fiscal expenditure, we need to further analyze the efficiency of fiscal expenditure and influencing factors. Such a study is of great significance for our understanding of local fiscal expenditure and adapting targeted measures to solve the problems in the financial expenditure, thereby enhancing the efficiency of fiscal expenditure.Over the years, Sichuan Province has focused on improving the efficiency of fiscal spending and has taken a series of measures to carry out a series of performance evaluation, also has made certain achievements, but there is still much need to continue to improve. Depth understanding of the actual situation of the efficiency of fiscal spending of Sichuan Province, figuring out an approximate level of the Sichuan efficiency of fiscal spending in the country, an objective analysis of the factors that impact the efficiency of fiscal spending in Sichuan Province is of great significance to the Sichuan Provincial fiscal expenditure efficiency, because only a clear understanding of fiscal expenditure efficiency of Sichuan Province and its influencing factors, including the technical efficiency, scale efficiency, the status of the structural efficiency and its influencing factors, can we be able to take targeted measures to improve the efficiency of fiscal spending, can we be able to better improve the efficiency of fiscal spending in Sichuan Province. Therefore, research is necessary and beneficial. This Research is a very useful attempt by learning from the previous research and by using mathematical analysis. In particular, Chengdu is the center which vigorously promotes urban and rural Co-ordination.In this paper, as an opportunity to vigorously promote the evaluation of the efficiency of fiscal spending and promote urban and rural areas, based on the analysis of the total fiscal expenditure change of Sichuan Province, I pointed out that the scale of fiscal expenditure in Sichuan Province showing the rapid development trend, so it was very necessary to study the efficiency of fiscal spending. Then I used the method of qualitative analysis, combined with the problems and the measures of Sichuan Province already taken to analyze the factors that affects the efficiency of fiscal expenditure and its direction, and a significant degree, and then I used the methods of empirical analysis, two models on the efficiency of fiscal spending and impact factors for quantitative analysis to discuss, and finally combined with the conclusions I put forward some ideas and practical recommendations to improve the efficiency of fiscal expenditure of Sichuan Province. Detailed as follows:The first part is research-based, composed of first and second chapters. The first chapter described the background of this research, the meaning and purpose of the study, main contents and methods to study the difficulties, and domestic and international research on the efficiency of fiscal expenditure. In the second Chapter, Study was carried out detailed theoretical analysis on the efficiency official spending, including the connotation and extension of the theory of financial expenditure, the fiscal expenditure efficiency evaluation index system theory, fiscal expenditure efficiency assessment theory and its limitations, and fiscal expenditures factor analysis theory, which laid a solid theoretical foundation for the following chapter of the research.The second part is the main part of the Article, which studied the efficiency of fiscal spending in Sichuan Province. It is divided into qualitative and quantitative analysis of the two parts of the efficiency of fiscal spending, including third and fourth chapters. The third chapter analyzed the factors influencing the efficiency of financial expenditure from the perspective of the qualitative analysis. The purpose was to do to lay the ground work for subsequent quantitative analysis. Combined with the specific situation in Sichuan Province, this chapter had analyzed some larger impacts on fiscal expenditure efficiency factors, including the three aspects of economic, geographic and social factors, especially economic and social factors. The forth chapter Used the DEA model to calculate the relative positions of Sichuan Province, And further analyzed some factors on the efficiency of fiscal spending by the Tobit model. The article pointed out, Sichuan Province, in terms of technical efficiency, scale efficiency or structural efficiency is not high, there was much room for improvement. On influencing factors, the article pointed out that the degree of fiscal decentralization on spending efficiency adversely affect and the level of education of residents and the size of government has a positive effect. The third part is the corresponding counter measures, composed of the fifth Chapter. The part analyzed possible measures from the perspective of technical efficiency, scale efficiency, structural efficiency, combined with the factors influencing the efficiency of financial expenditure. In this paper, based on the theory of financial expenditure, the use of input-output data and the practical results of improving the efficiency of fiscal spending, combined with issues related to existing measures, I deeply analyzed the efficiency of fiscal spending, and reached the following independent views:First, through a detailed analysis of factors influencing the efficiency of Sichuan Province, as well as on the part of the factors regression analysis, believe Exogenous variables that impact on the efficiency of fiscal spending in Sichuan Province, mainly is social-political factors, including the system policy environment, the degree of fiscal decentralization, the size of government,the level of corruption, the softening of the residents affected by the level of education, as well as budget constraints, which, especially the system policy environment, the degree of fiscal decentralization and budget constraints of the softening degree of staggering. Among them, the degree of fiscal decentralization on the efficiency of fiscal spending is negative, which showed that increasing the autonomy of local government by the increase in the degree of fiscal decentralization is not conducive to raising the efficiency of fiscal spending from the general. The Level of education of the residents has a positive impact on the efficiency of fiscal spending, which Showed that the level of education of the residents do have a role in promoting the efficiency of fiscal spending. This is consistent with the general conclusion.Second, through research and analysis of the relative efficiency of financial expenditure of the ten provinces and municipalities, it Come to the Sichuan Provincial fiscal expenditure per capita scale, low per capita out put and low efficiency conclusion. Pure technical efficiency and scale efficiency of fiscal spending is at a low level. They are not only lower than the developed eastern provinces, but lower than the western provinces and scale efficiency is in the descending phase. Structure efficiency is not high because people’s livelihood and expenditure accounts for a large proportion.Third, to face the reality of the situation of Sichuan Provincial fiscal expenditure efficiency, we are very necessary to learn from existing methods to vigorously improve the efficiency of fiscal spending. On the technical efficiency, we should improve the relevant system, strengthen supervision of financial funds; We should rationally use financial resources and reduce the number of pure consumer spending, while increase the use of advanced technology and project management. On efficiency of scale, the boundaries of government should be clear. We should establish Reasonable size control mechanism. We should weaken some spending, and strengthen some spending, cancel some spending,Such as the exit of the general field of competition and strengthen the public service expenditures. On Structural efficiency, from a comprehensive and long-term perspective we should establish the structure of fiscal expenditure, taking into account the level of structural efficiency. In addition, We can also take some other measures, including changes in the concept of the government to provide public goods, the transformation of government functions; To improve the management of the government through the Government’s own management system innovation:To Step up publicity to guide the masses are concerned about the efficiency of fiscal spending.Forth, we can do something for further research, including the selection of indicators, the choice of fiscal expenditure impact factors, the improvement of the mathematical model and the financial expenditure Pare to optimal state. However, due to the lack of limited data and practical experience, research on fiscal expenditure efficiency of Sichuan Province is established only on the basis of theoretical analysis. There is no depth to actually do a more detailed analysis. Hope that through a combination of practice we could do some further research.