Research On Administration Cost Control Of Shandong Province

The high administration cost of local governments has become a major obstacle hindering the development of the economy and it also has an effect on the process of deepening the structural reform in our country. As the subject of the administrative system reform, the level of administration cost of local governments is directly related to the administration efficiency and the governments’ credibility. Therefore, this paper selects local governments of Shandong province as the object to analyze the status of the administration cost control. The administration cost has become the emphasis and the difficulty in domestic and foreign academic research. On the basis of previous studies, this paper is more inclined to make a deep analysis on the causes that result in the non-standard expenditure from the reality and quantitative analysis by using the latest data. It attempts to provide some new ideas to improve the level of administration cost management.Firstly, this paper discusses the related theories of administration cost and makes a clear definition and classification for it. The specific connotation of administration cost is explained and the basic theories of administrative cost are provided as a theoretical support for the following research.Secondly, based on the related data statistics in recent years, it analyzes the current situation of administration cost of Shandong province. Moreover, it emphasizes existing problems on the control of administration cost in Shandong. The problems mainly manifest in luxury administration phenomena, the high proportion of administration cost in local fiscal expenditure, the opaquely "three expenditures" that are difficult to supervise, incomplete administration cost data content, the hidden cost that is difficult to quantify and so on.Thirdly, based on the related data statistics, it selects the factors affecting the administration cost to analyze the influence degree of each index on the administration cost and find the key influencing factors. Starting from the key factors, the paper explains the reasons of high administration cost in Shandong province concretely.Finally, according to quantitative analysis on the influencing factors of administration cost in Shandong province mentioned earlier and the actual situation in administration cost management, the paper makes a analysis on the causes that result in the non-standard expenditure and provides reasonable countermeasures and suggestions to improve the administrative cost management level of Shandong province based on the successful experience of domestic administration cost control of local governments.