Study On Local Fiscal Expenditure Structure Preference

This paper selects 1994-2013 statistical data to study the function of local fiscal expenditure structure in China. First of all, because our country the functions of local fiscal expenditure item is more, this article selects the economic transaction expenditure, expenditure on education, health care expenditure, social security and employment expenditure as well as science and technology to analyze spending preferences; Second, because our country territory is vast, regional differences,economic development level also have bigger difference, so will the division of eastern, central and western regions in our country. In consideration of the geographical factors and economic development level, the eastern region to choose hebei, jiangsu, zhejiang, fujian, shandong, guangdong six provinces, the central region choose to jilin, heilongjiang, anhui, jiangxi, hubei, shanxi six provinces, the western region chose guizhou, yunnan, gansu, qinghai, ningxia, six provinces of Tibet as sample comparison analysis; Finally, select the local fiscal itemized accounts for the proportion of local fiscal expenditure and place each subentry expenditure elasticity is studied. The results show that the different economic development level, the regional government spending preferences are different, the eastern region prefer spending on education and health spending, the central region prefer spending in science and technology, the western region prefer spending on economic affairs, regional preferences spending in line with the economic development stage theory.In the "new normal" period of economic development, governments at all levels should actively adjust their functions, reasonably clear division between government expenditure responsibilities, strengthen the function of local government in order to optimize the local fiscal expenditure, as much as possible to meet the needs of people,on the basis of economic growth, realizing the maximization of social welfare.