An Empirical Study Of The Hun Chun Financial Expenditure And Economic Growth Relationship

Economic growth is a major part of the premise and foundation of a national or regional economic development, social progress, fiscal spending as the government’s macro-control policies which plays a very important role in economic growth. With the establishment of the institutional framework of the development of the market economy and public finances, fiscal reform in China has entered a new phase of focus on expenditure reforms, optimizing the structure of fiscal expenditure, improving the economic growth effects of different types of expenditures fiscal expenditure reform has become an important and urgent task, therefore, it has important theoretical and practical significance to study Hun Chun economic growth from the point of the structure of fiscal expenditure.Firstly, the paper pointed out the problems of the structure of fiscal expenditure in Hun Chun fiscal expenditure on the basis of investigating the theory of economic growth-especially endogenous growth theory. Then, the study combined relevant statistical data with comprehensive analysis from the point of view of the structure of status quo of the Hun Chun City’s fiscal expenditure structure and constructed a model of the structure of fiscal expenditure and economic growth. By using the regression analysis of EVIEVS software, we concluded fiscal spending to its economic growth in Hun Chun City’s proportional relationship. The fiscal spending each additional10,000Yuan GDP increase47,600Yuan correspondingly. We also found that spending part impacts differently on the economic growth. It is obvious that the education spending and public spending play leading role on economic growth, however, health services expenditure and administrative expenditure plays very weak effect on the economic growth.Combining Hun Chun’s current economic development and fiscal expenditure situation, this paper proposed a step-by-step solution to the problems on the basis of the results of the empirical analysis. The administrative reform is needed to face excessive administrative expenses with controlling strictly on public funds, establishing performance evaluation mechanism for administrative expenses. What’s more, we made policy recommendations such as increasing investment in the cause of education, improving the health of investing environment and improving the efficiency of the health financial investment.