Research On The Effects Of The Livelihood Of Local Fiscal Expenditure Of Urban Residents’ Consumption

In recent years, China’s rapid economic development, the increase of residents’income, but it is inevitable, also appears a series of problems at the present stage in China.We can analyze these problems from two Angle, from the perspective of the efficiency ofour country to promote economic growth, investment and exports for a long time such agrowth model not only do not conform to the law of development of market economy butalso on the sustainable development of our country’s economy may cause adverse effects.From fair perspective, our country’s education, medical treatment, social security,employment, and other areas of the people’s well-being exists inequality, and thusaccumulated a certain social contradictions in the field of the people’s well-being. If theproblem is not solved will inevitably affect China’s economic development and socialstability. To expand domestic demand, especially in the transitional period of economysystem is particularly important, spending to stimulate the economy is the sustainableeconomic development. And advocated in our country as soon as possible thetransformation of government functions, from the production under the premise of thegovernment to public service-oriented government, the government if the use of people’swell-being fiscal spending to drive the consumption of residents, can not only improvepeople’s well-being issues, and to promote the healthy development of the economy isheaded.Through to the domestic and foreign literature, it can be seen that fiscal expenditureon the residents’ consumption may be the influence of two aspects: one is the "substitute"the fiscal expenditure will squeeze consumer, another is to promote role, namely, increasedgovernment spending to the improvement of residents’ consumption level. In the study ofpeople’s well-being, generally recognized by the scholars of our country residents incomegap, but few people study the local people’s well-being fiscal expenditure on the influenceof different income levels of residents’ consumption, therefore, this article will for urbanresidents of different income groups consumption as the research object.This article first to the well-being of the people, and people’s well-being financerelated concepts defined, the second object of this article to research traced back thetheoretical foundation for the analysis of the related. Then use statistical computing andgraphics depicting the calendar year’s finances as well as the urban residents’ consumptionsituation in our country made detailed analysis and discussion of the local people’swell-being, low level of fiscal expenditure, the causes of deficiency of effective demand for urban residents, where the empirical section through the establishment of the people’swell-being fiscal spending the middle-income and low-income groups classes, high incomelevels of urban residents’ consumption of the relationship between econometric model, it isconcluded that the local people’s well-being fiscal expenditure on the influence of differentincome levels of residents’ consumption in cities and towns. Research conclusions showthat stimulates the people’s well-being of residents’ consumption of fiscal expenditure,especially in urban low-income effect is more obvious. At the end of the article, in view ofthe empirical conclusions, puts forward some policy Suggestions.