An Analysis Of The Impact Of Fiscal Expenditure Structure On Economic Growth And Social Equity In Zhejiang Province

Efficiency and fairness are not only the two basic principles of economics, butalso the main principles of fiscal expenditure which could be reasonably and effectivelyarranged. Ronald Fisher (Ronald C.Fisher) pointed out, local fiscal expenditure isrelated to the realization of financial resource allocation, income distribution andeconomic stability. Stability and development situation of social and economic are thecomprehensive result of fiscal resources, and a balance between efficiency and fairness.In recent years, Zhejiang province has achieved rapid economic growth,but socialproblem are serious.In such a situation, we will do a research on the effect of fiscalexpenditure structure of Zhejiang province in1990~2011years on economic growthand social fairness, in order to study the optimization of fiscal expenditure structure.In this paper, through theoretical analysis, chart analysis and empirical analysis,we can explore the effects of the specific items of fiscal expenditure of ZhejiangProvince on economic growth and social equity. In theory, mainly through themacroeconomic model and the influence mechanism analysis. In the statisticaldescription, drawing the corresponding graph, furthermore the analysis of Zhejiangprovince’s economic growth and social equity. In empirical analysis, using Ewiews5.0to analyze their effects.Local fiscal expenditure structure and local economic growth and social justiceare highly correlated. Through the Eviews test,results show that: there is a long-runequilibrium relationship between local fiscal expenditure structure and economicgrowth and social development. Maintenance expenditure increased due to increaseeconomic growth, but economic growth does not necessarily lead to maintainexpenditure; economic expenditure and economic growth and social equity is negativelyrelated. There is a positive correlation between social spending and economic growthand social justice. Maintenance expenditure and economic growth and social equity isnegatively correlated, indicating that the scale of fiscal expenditure of Zhejiang hasexceeded the critical point.Based on the analysis of empirical research, this paper givesthe specific policy recommendations of the government fiscal expenditure structureoptimization.