The Impact Of The Financial Social Security Expenditure On The Income Gap Between Urban And Rural Residents In Shandong Province

In recent years, with the rapid development of Shandong Province, some problems that have been concerned by the government and people have appeared, and the income gap between urban and rural residents is one of them. Because of the development of social economy,the income of both urban and rural residents in Shandong Province has been significantly improved, but the growth rates are quite different, In addition, because of China’s long-term urban-rural dual system, policy and fiscal expenditure also exist in urban bias than in rural areas, and urban residents have more channels to obtain the resources and financial support. All of these factors lead to the income gap between urban and rural areas of Shandong Province.In the third Plenary Session of the 18 th CPC Central Committee, the party proposed to put the people’s livelihood as the key areas of social construction. This shows that the income gap between residents has aroused great concern and entered the national public policy agenda, and it has also become a problem which can not be avoided in the future social management and related system reform.In the book of rites there is such a paragraph: "make the old has good end, the strong have to use, the young, pity, widows, orphans, single, disabled person all be raised." We can use this sentence to illustrate the goal our social security system in order to achieve is that reduce poverty and gradually narrow the gap between the rich and the poor, and ultimately realize social equity, it require the social security through a certain way to adjust the income distribution, because the public finance and social security are inseparable, our country supports the social security system through fiscal expenditure, in order to make better use of the income redistribution function of the social security system, narrow the income gap between urban and rural residents, so that every people can enjoy the benefits of economic and social development, and ultimately realize the social justice and welfare maximization. We choose Financial social security expenditure as government’s transfer payment, on the one hand, it can reduce poverty and protect the interests of low-income and vulnerable groups, On the other hand, it can reduce the income distribution gap caused by the pure market distribution mechanism. Based on this consideration, the financial social security expenditure has become a common way to adjust the income distribution.The article first defines the related concepts of social security expenditure and the urban-rural income gap and the mechanism of the related mechanism and influence are analyzed; through the data, this article detailed analysis the Shandong province of social security expenditure and the urban-rural income gap situation, Through different angles, the appropriate method is chosen to make an empirical study on the impact of the social security expenditure of Shandong Province on the urban-rural income gap, finally it summarizes and analyzes the causes of related problems, and specific policy recommendations are given from some aspects such as: the improvement of fiscal expenditure level of social security, optimize the structure of financial social security expenditure, rational division of powers and rights, and establish and improve the fiscal transfer payment system.