Research On The Efficiency Of Local Government Fiscal Expenditure On People’slivelihood In China

The concept of financial livelihood was proposed that means our country from taking economic construction as the center began transition to the double protection way of the development of economy and people’s livelihood. The local government financial expenditure of people’s livelihood is an important tool of national public finance policies on people’s livelihood, and is also the main means to narrow the gap in development between regions. Since the reform of the financial system, the scale of China’s financial expenditure of people’s livelihood in all levels of government financial expenditure of people’s livelihood is increasing year by year, there is a larger difference that the efficiency of capital allocation performance in each area, the efficiency of financial expenditure of people’s livelihood has become a fact that China’s local government must to face. From the developed countries financial livelihood system and financial expenditure of people’s livelihood situation to analyze the factors of China’s local government financial expenditure of people’s livelihood efficiency and its effect is very important, it is also to change the people’s livelihood service functions, it is beneficial to the development of China’s public welfare or regional policy, in order to improve the efficiency of our government the people’s livelihood expenditure.On the basis of the system of public finance and expenditure situation of foreign developed countries, this paper focuses on the differences of China’s local government financial expenditure of people’s livelihood efficiency and influencing factors. In the empirical research, First of all, we try to analyze the scale of the financial expenditure of people’s livelihood and the trend in China, Compared to financial expenditure of people’s livelihood scale in the United States and Japan,analyzed the scale of financial expenditure of people’s livelihood of our local government, and then according to the related variables were selected by literature and defined by the Ministry of finance to construct input and output variables.Selection of local government financial livelihood input-output data in 2008 to 2013 in China, from the angle of the output variable and returns to scale, using the DEA analysis method to calculate the overall or regions value of the efficiency of financial expenditure of people’s livelihood, analyze the reasons for efficiency differences of the financial expenditure of people’s livelihood. The research results show that,Firstly, there are obvious differences about comprehensive technical efficiency of financial expenditure of people’s livelihood between different local government,Besides the efficiency score of Zhejiang, Fujian, Ningxia province is 1, other province,s have existed efficiency is inadequate, but the overall efficiency is high, the comprehensive efficiency value of many provinces more than 0.9. Secondly,from the East, middle and West three regions, the overall technical efficiency level of the eastern of the government financial expenditure of people’s livelihood and pure technical efficiency level is higher than that of the western region, and the scale efficiency level in the central region and East are the same. Thirdly, from the overall perspective of our country, the scale efficiency is closer to the efficiency frontier,while the pure technical efficiency is relatively low. According to the formula of decomposition, the scale efficiency of the local government financial expenditure of people’s livelihood value is better to the pure technical efficiency value. Therefore,the local government financial expenditure of people’s livelihood comprehensive technical efficiency is not fully pure technical efficiency are relatively low caused.Fourthly, from the scale of the return period, the financial livelihood of the people in most provinces of China is in a stage of irrational. Besides Zhejiang, Fujian and Ningxia provinces,s scale of financial expenditure of people’s livelihood are in the size of the optimal, other provinces need to adjust the scale of financial expenditure of people’s livelihood in order to improve its efficiency. Fifthly, from the external influence factors of the Tobit regression results show, the degree of fiscal decentralization, the per capital GDP, the Engel coefficient of urban residents to improve China’s local government finance of people’s livelihood expenditure efficiency level have a significant negative correlation, the foreign trade dependence degree, population density, urbanization level and education level has positivecorrelation to improve the local financial expenditure of people’s livelihood efficiency level. Regional characteristics of the eastern region of the government’s fiscal expenditure on people’s livelihood has a significant role in promoting. Finally,combined with the full text of view, this paper from the internal effect of decomposition and external factors(the degree of fiscal decentralization, residents Engel’s coefficient, GDP, the foreign trade dependence degree, population density, the level of urbanization, etc. factors effect on the efficiency of fiscal expenditure for people’s livelihood in China) two perspectives explain the 2008-2013 local government finance of people’s livelihood expenditure efficiency changes.Research has shown that, The comprehensive technical efficiency of China’s local government finance and livelihood expenditure is not only affected by the internal pure technical efficiency and scale efficiency, but also by the impact of fiscal decentralization degree, GDP, urbanization level and other external factors.Therefore,we will proposed related suggestions to improve the efficiency of China’s local government financial livelihood expenditure from the internal and external two aspects, Include perfecting the system of China’s public finance of people’s livelihood,improve institutional mechanisms to improve the efficiency of local government fiscal expenditure on people’s livelihood,adjust measures to local conditions to improve the efficiency of financial and livelihood expenditure, efforts to narrow the differences in the efficiency of local government finance and people’s livelihood expenditure, optimize the internal structure of fiscal expenditure on people’s livelihood, reasonable definition of the central and local governments of their respective people’s livelihood fiscal responsibility and expenditure, ensure the economic and financial development at the same time and perfect the government performance policy.