Analysis On Poverty Reduction Effect In Henan Province From The Perspective Of Public Expenditure

Poverty is an prevalent problem around the world, both for a developed country and a developingcountry, the only difference reflecting in poverty degree. Championing their efforts to get rid of poverty, allthe governments now focus on the the research on overcoming poverty. As Henan Province, with relativelygreat population and agriculture in our country, is weak in economic development, its poverty problem isexceedingly protruding:Poverty has a trend of regional concentration, the poverty level is low, theproduction and living facilities, poverty-stricken county system has many loopholes, targeting andalleviating poverty mechanism has many flaws, poverty problem has become increasingly complicated.The public expenditure of the government, as an effective way to overcome poverty, plays anirreplaceable role. Under this background, I did the study on the poverty reduction effects of publicexpenditure in Henan Province, which will be beneficial for the central plains economic zone to constructwell-off society in an all-round way and has important theoretical and realistic significance.In this paper, through theoretical analysis and empirical analysis, combining the method ofquantitative analysis and qualitative analysis I made the following analysis: firstly, I did the analysis andstatistics of poverty situation in recent years and the condition of public expenditure in Henan Province;Secondly, I made theoretical analysis about the poverty reduction effect of public expenditure: ï¼´hefeasible ability poverty effect of public spending on education and public health expenditure to is obvious,the social security expenditure plays an important role in income poverty, economic growth has overt effecton both income poverty and feasible ability poverty;Then, through the regression and total componentregression I establish an analysis framework to analyze the correlation among all the elements that affectsthe incidence of poverty in Henan Province: the increase in public expenditure, as a share of GDP ofHenan province, is negatively related to the the incidence of poverty, which means its effects of povertyreduction is positive, Among them, the public education expenditure, social security expenditure and publichealth expenditure, their increase in share of GDP also has a negative correlation with incidence of poverty,but with different contribution in poverty reduction, and there is a negative correlation relationshipbetween economic growth and poverty rate, but not a obvious one;In addition, through the analysis I discovered in Henan Province there exist some problems in the economic development and publicexpenditure; Finally, for the current problems of public expenditure in Henan Province, I put forward somesuggestions and countermeasures to perfect the structure of public expenditure, and to promote thedevelopment of poverty reduction: to make a further adjustment of the structure of public expenditure,tomake the public service work; to adjust and improve the the poverty reduction and targeting mechanism; tooptimize the economic structure and pay more attention to the fundamental role of economic growth inpoverty reduction.