Empirical Analysis Of Fiscal Expenditure Structure Optimization Based On Economic Growth

The comprehensive construction well-off society, is not only facing a rare historicalopportunity, but also facing a series of serious challenges. As one of the important toolsof government macro regulation and control, China’s fiscal expenditure is growing yearby year, but the structure of it is not perfect. The phenomenon of government function "Absence" and " Offside " still exists.This paper divides the national main expenditure items successively into economicconstruction spending, social culture and education expenditure, the expenditure fornational defense, the administrative expenditure and other expenditure. Through themethod of the multiple regression by establishing the metrological economic model, thispaper researches empirically the effect of the five kinds of national fiscal expenditure, thecentral and local fiscal expenditure on economic growth in1978~2011.This study getssome conclusions, that is, from1978to2011, the scale of fiscal expenditure is increasedyear by year, but comparing with the developed countries the difference is so obvious.Onthe aspect of the proportion, the highest proportion is the economic constructionexpenditure.And the social cultural and educational expenditure proportion issecondly.The proportion of administrative expenditure and other expenditure arerelatively close in third place.The proportion of national defense expenditure proportionis minimum.On the aspect of the overall trend, the economic construction expenditureand the national defense expenditure has declining trend, while the social culture andeducational expenditure, the administrative expenditure and other expenditure has risingtrend.From the view of the absolute amount of GDP, economic construction spending,social culture and education expenditure, the expenditure for national defense, theadministrative expenditure and other expenditure’s increases may have a role inpromoting economic growth. From the economic growth perspective,changes inproportion of different fiscal expenditure items have significant differences on theinfluence of economic increase rate. The increase of the proportion of the expenditure oneconomic construction, of the national defense expenditure, and of the central financialexpenditure will lead to a decline effect on economic growth rate, while the increase of the social and educational expenses, of the administrative expenses and of the local fiscalexpenditure will promote economic growth rate increased. The level of the economicconstruction expenditure is still much higher than that of the developed countries andeven higher than that of many developing countries. The high proportion of it will not beconductive to economic growth. The social cultural and educational expenditure canpromote economic growth, but the proportion of it is not so high and the growth rate isfar below the administrative expenditure. The proportion of the administrativeexpenditure in the fiscal expenditure has been above the10%level. In the long term,comparing with the expenditure of the central government, the local fiscal expenditurehas more advantage to promote economic development.At last based on the results of empirical research, this paper finally puts forwardsome countermeasures and suggestions about how to improve China’s fiscal expenditurestructure.