Government Audit,Corruption,and The Efficiency Of Public Expenditure

With China's economy entering a "new normal",GDP growth slowed.In order to stimulate economic growth,expand demand and achieve employment,China adopted an expansionary fiscal policy after 2010.The government must provide public goods for the society.The financial expenditure is the basis and strong guarantee for the sustainable development of economy and social development.By 2015,China's fiscal deficit rate has approached 3% of the international security line,but people are not satisfied with the current quality of public services.There are still a large number of people's livelihood issues in urgent need of solution in China.Faced with such a so-so high fiscal deficit rate,we can not help but think about whether the ever-increasing financial risk of operation is reasonable and whether the money is spent on cutting edge? Although the total amount of public finance expenditure affects public service to a certain extent,the efficiency of public expenditure is the key to determining the quality of public service.Therefore,the expected GDP growth per unit financial expenditure is the main direction of this paper.With the implementation of our country's expansionary fiscal policy,the scale of government spending has been continuously expanded,and the growing problem of administrative corruption has drawn more and more attention.Public finance powers provide a hotbed for corruption.Many corrupt officials make use of their positions for personal interests.They not only undermine public finances but also violate the public interests of the broad masses of the people.As an important part of the national governance system,government audits safeguard the financial security of the country and shoulder the burden of ensuring the healthy and sustainable development of the national economy.National audit input will directly affect the quality of audit,so as to achieve the deterrence and punishment of corruption.Through the annual performance report released by Audit,it can be seen that the input-output ratio increased from 1:252,1:256 and 1:260 respectively from 2013 to 2015,indicating that the financial funds per audit unit may be Economic benefits such as increase in income and expenditure for the country are constantly increasing.Therefore,thegovernment audit team led by the state auditing organ is of great significance to the fight against corruption and building a clean government.Nowadays,a large number of studies have shown that the degree of corruption will affect the expenditure of public finance and may even distort the structure of public expenditure and dilute the economy and efficiency of state finance.However,there is little literature on whether the government auditing can effectively curb the corruption's relationship with the inefficiency of public expenditure,and there is no literature to study in more detail the economic benefits that the government audits affect various public expenditures.Based on the innovation of the research perspective,this paper uses "per capita real GDP/public expenditure" to measure public expenditure efficiency.That is to say,the increase in per capita real GDP per unit of increase in public expenditure items is more in line with the meaning of the "public expenditure efficiency indicator".This article draws on a large number of domestic and foreign literature,combing the relationship between corruption and public spending efficiency.Based on the theory of public economics,the theory of fiduciary economic responsibility and the "immune system" theory of national auditing,two hypotheses are put forward:(1)there is a significant negative correlation between corruption and public spending efficiency of local government;(2)Efforts can curb the negative impact of corruption on public spending efficiency.The article selects 150 sample data from 30 provinces,autonomous regions and municipalities in China from 2010 to 2014 and tests the two hypotheses by establishing relevant models.The empirical study shows that:(1)Corruption will restrain the efficiency of local public expenditure,that is,corruption will reduce the efficiency of local government's public expenditure;(2)Increase the government audit will improve the inhibition of corruption to the public spending efficiency and improve the local government Public spending efficiency.Therefore,government auditing has a regulatory effect on both corruption and public spending efficiency.Specifically,by increasing the auditing power of government audits and verification efforts,the government audit's function of controlling corruption can increase public expenditure efficiency,especially in the areas of public services,national defense,public safety,education,health care,environmental protection andagriculture and forestry Water Affairs.Finally,in the robustness test section,the same conclusions can be drawn for the whole sample.In the classified sample,only the general public service expenditure,public safety,education,medical care,and environmental protection had significant results.But overall,the empirical results are robust.According to the research conclusions,this paper proposes to help improve government auditing and increase public expenditure efficiency from five perspectives: increasing government auditing investment,perfecting audit verification mechanism,improving audit accountability mechanism,improving audit announcement system,and broadening audit supervision channels.So that every unit of public expenditure can be fully used to expand its economic growth benefits.Through the research of this thesis,the research on government audit and corruption governance is enriched,which provides a new perspective for the study of the relationship between corruption and public expenditure,and provides theoretical support for the government's anti-corruption work.