An Empirical Research On The Public Financial Expenditure Of Changsha City

Changsha is the capital of Hunan Province and one of the most vital industrial and commercial cities in central-southern China, whose problems in the aspect of public financial expenditure, to some extent, could make known the overall condition and limiting factors in central China. Hence, a research on the public financial expenditure of Changsha can provide certain reference values to other parts of Hunan Province as well as other provinces and cities of central China. In spite of various risks and disadvantages, breakthroughs have emerged in the financial tasks of Changsha with the efforts for social livelihood by local financial and revenue departments. In recent years, however, financial stress continuously grows and some limiting factors hidden behind the social development and financial revolution start to show, by reason of tight macro-control, real estate regulation, structural tax-cut policy, drought, etc. As a result, to optimize the allocation of resources and to make limited public resources meet relatively boundless social needs sensibly, some issues should be drawn from a necessary research on local public finance to make public financial expenditure system work in a better way. Based on some fundamental financial theories and the purpose of livelihood improvement, this essay will study empirically on the local financial status of Changsha City, mainly from the aspects of expenditure scale and structure. Some initiatives will be concluded by logical reasoning at the end of this essay.The background, significance, research methods and general ideas of the topic involved will be introduced in the first part of this essay, which also contains a generalization of western theories on public financial expenditures, a simple classification of related domestic scholarships and an overall summary. A self-evaluation on excellence and deficiency will be included as well. The second part mainly deals with the basic theory of local financial expenditure which is concreted by the author with analyses of the definitions and relationship between national and local finance. An introduction of the theory of local public resources and efficient allocation will lead to the conclusion that the duty of optimizing resources supply lies on the local financial departments who are naturally supposed to act positively. The third part is about an empirical analysis that there is no universal structure and standard of public financial expenditure which should adjust to the actual needs of the whole society, based on the expenditure scale and structure of Changsha City drawn from available data. Four problems of Changsha are put forward by comparison in the fourth part:the disproportion between financial growth and expenditure, the dilemma of the strong reliance on finance, the gap of a sustainably healthy and stable expenditure system on science, education and culture and the insufficiency of expenditures on healthcare, social and job insurance, to which corresponding solutions are suggested. The fifth part makes a general conclusion on the topic of this essay.