Research On Relevance Of Chinese Fiscal Social Security Expenditure And Economic Development

With the establishment of the goal of modernization and a well-off society, socialsecurity as an important means of achieving goals, has been taken more and moreimportant. Fiscal spending on social security as a branch of the government fiscalspending, not only plays an important role in achieving the target of safeguard thelivelihood of the people, but also promotes the development of a country’s economy.Budget for social security spending, can increase the income of social members, promoteconsumption and investment, thereby promoting the development of economy; Budgetfor social security spending, which is beneficial to the social security playing the role ofprotector of labor reproduction, promote labor resources play a better effect, so as topromote the development of economy. In2012, during the two sessions, a representativesuggested in2013,2020,2013, fiscal spending on social security expenditure accountsfor the proportion of fiscal expenditure should not be lower than15%,20%and15%respectively.The paper starts from theory, try to prove that fiscal expenditure on social securitypromotes economic development in our country, combined with the current situation andfuture trend of fiscal expenditure on social security, build a data model, using theEviews6.0etc to make a Causal analysis and empirical analysis, to prove that fiscalsocial security expenditure has a promoting effect on economic growth, and puts forwardsuggestions for the expansion of expenditures on social security.This paper consists of four parts:Chapter1: Expounds the related concepts and theories used in this paper. Definetwo concepts that involve in the paper，at the same time，discuss theory of multipliereffect, granger co integration theory and transaction cost theory。Chapter2: Introducing public expenditures for social security in China. Describe thestructure of, influence factors, scale, issue, etc., focus on China’s social security reformtrend under reasonable assumptions, branch out the project of fiscal social securityexpenditure data of our country in the future.Chapter3: Empirical analysis on fiscal expenditure on social security promotingeconomic development. In order to prevent the phenomenon of “false return ", first of alltake granger causality analysis for fiscal expenditure on social security and GDP, demonstrate that they have granger causal relationship,Then use cob-Douglas functionmodel to calculate the sensitivity of the economic development to fiscal expenditures onsocial security.Chapter4: Theoretically summarizes through what channels the fiscal socialsecurity expenditure promotes the development of China’s economy and puts forward thesuggestions of perfecting our country’s fiscal expenditure on social security. Keyrecommendations include adjusting fiscal expenditure structure, increase social securityinvestment; increase investment of the central government, establishment of a socialsecurity transfer payment system; Broaden the fiscal social security fund-raising channels,levying social security tax; strengthen the management of public expenditures, regulatechannels of social security expenditure; Attaches great importance to the construction ofrural social security system, increase spending for rural social security.