Research On The Influence Of People’s Livelihood Expenditure To Income Distribution

The widening gap of income distribution has become a well-concerning focus, constructing a harmonious society requires a effective regulation on income distribution.There are many reasons that result in the widening gap of income distribution,one of which dues to the malfunction of fiscal expenditure for the control of income distribution.At present, our country’s economy has entered a stage of maturity, according to the theory of economic development, fiscal expenditure structures need to change from "construction finance" to "people’s livelihood finance". Therefore, research on the influence of people’s livelihood expenditure to income distribution is of great significance.In terms of theoretical analysis, first define the relevant concept of people’s livelihood expenditure and income distribution respectively, in order to lay a good foundation for the further research of below, and then elaborate the mechanism of the people’s livelihood expenditure on income distribution;In terms of empirical analysis, first describe the present situation of people’s livelihood expenditure and income distribution respectively to interpret the existing problems,and then use Eviews to analyze the influence of people’s livelihood expenditure on income distribution.The research results show that people’s livelihood expenditure does not play the role of adjusting income distribution:In terms of scale,first of all, the study of correlation coefficient between people’s livelihood expenditure and Gini index shows that people’s livelihood expenditure and the Gini index have inverse relation, namely the increasing of the people’s livelihood expenditure is conducive to narrow the gap; Second, the regression analysis of the people’s livelihood expenditure and income distribution gap shows that the people’s livelihood expenditure expands the urban and rural residents’income distribution gap.The empirical results show that the people’s livelihood expenditure is helpful to reduce the overall income distribution gap, but enlarged the urban and rural residents’ income gap, which prove people’s livelihood expenditure structures are unreasonable, tend to lay particular stress on city, then lead to analyze the structures of people’s livelihood expenditure on purpose.In terms of structure,according to the hierarchy of needs theory,this article classifies people’s livelihood expenditure into five categories,using the panel model to clear the main problems of the people’s livelihood expenditure structures.The first layer of people’s livelihood expenditure, which supposed to be the foundation of all,on the contrary expands the urban and rural residents’income gap; the fourth layer of the people’s livelihood expenditure,which concerning the sustainable development of our society and economy, does not makes a obvious improvement on the income gap;the fifth layer of the people’s livelihood expenditure, which is only used as an systemic guarantee and should be minimized at most,further worsening the income gap because its remaining obstinately high.In view of the problems above, this article put forward some targeted suggestions to improve people’s livelihood expenditure:first, determine the four principles of the people’s livelihood expenditure, namely, hierarchical expenditure principle, the demand principle, beneficial region principle, and suit with economic development principle; Secondly, in terms of people’s livelihood expenditure scale, guarantee the steady growth of people’s livelihood expenditure, make "quantity" grow to push "qualitative" change; In terms of people’s livelihood expenditure structures, ensure and optimize the first and the second layers, make reasonable arrangements of the third and the fourth layers and compress the fifth layer. Finally, improve the relevant supporting measures, including reform the household registration system, perfect the transfer payment system, broaden the financing channels, establish the scientific performance of evaluation system and promote the public management of people’s livelihood expenditure.