Analysis In The Impact Of Social Expenditure On Inequality And The Reasons Of The Impact

Fiscal decentralization is a basic aspect of the government to break the highly centralized financial management system from the planned economy to market economy in China, to form the system of the various forms of fiscal contraction (1978-1993) and subsequent tax sharing system (1994-present), have made great efforts. In addition, the urban and rural dual structure of society in our country has a long history and social class differentiation problem, has been more prominent and curing, bring a series of political and economic problems. In such a social background, with economic growth, income inequality has also become an important economic and social problem in our country. And the goal of a harmonious socialist society in our country requires a reasonable distribution of interests between all members of society, in the pursuit of gross income level’s rising, at the same time, also should pay attention to the increasing income inequality. Income inequality problems have severely affects the speed and quality of China’s economic development, causes multifaceted political and social problems.Based on the theory of income redistribution and the theory of fiscal expenditure, the paper uses Yunnan province which has a prominent fiscal social spending effect as a case study to analysis the relationship between social spending and income inequality; At the same time, based on the perspective of new political economics, from three aspects of the fiscal decentralization, the urban-rural dual structure and social class,the article has analyzed the impact of social spending for income inequality in our country, and thus puts forward the path optimization of fiscal spending on social sharing effect.Income inequality in China mainly displays in the proportion of labor remuneration in primary distribution, gap of different industries, regions and urban and rural residents income gap, because the general social spending has a clear beneficiary, so it plays a significant role to improve income inequality, therefore, the article focuses on how the fiscal social spending impacts on income inequality and the reasons. Study founds that: 1. This paper chooses Yunnan province as an example of the less developed areas,which has a significant effect of the social spending scale, and studies the relationship between Gini coefficient and social spending in Yunnan province, found that the increase in social spending makes income inequality conditions improved;2.The fiscal and political incentive distortion caused by, the existence of urban-rural dual structure and social class differentiation are the causes affect the social spending to improve income inequality inefficient;3.In the light of the above analysis, the optimization path of sharing effect should be considered from the respects of reform of fiscal decentralization system to increase fiscal social spending scale’s, including the fiscal incentives and political incentive system, breaking the urban and rural dual structure, to optimize subject of rural social spending and the promotion of rural labor force to cities and the realization of the equalization of public services to break the cured social class structure.