The Research On Fiscal Expenditure Policy's Effect On Narrowing Urban-rural Income Gap Of Liaoning Province

Since the reform and opening up,China's economic development has made a substantial leap,the people's living standards have also been improved.However,the widening income gap between urban and rural residents comes behind.The dual economic system of prosperous city and decadent countryside coexist,leap industrial development and slow agricultural symbiosis has become a bottleneck hindering the sustainable development of the economy.At present,China's economy is changing from extensive development to intensive development.The transformation of the mode of economic development requires the transformation of the development of government functions.Correspondingly,fiscal expenditure policies need to be adjusted.The fiscal expenditure policy is the main means for the government to carry out macro-control.Reasonable financial expenditure scale and structure is conducive to improving the use of financial funds,urban and rural integration,providing a balanced urban and rural public service system.The topic of this article is established in this context.The main content of this paper is the effect of the fiscal expenditure policy of regulating the income gap between urban-rural in Liaoning Province.This paper mainly includes four aspects.First,explaining the theoretical basis and mechanism of how financial expenditure policy adjusts the income disparity between urban and rural residents.Based on the theories of market failure,government intervention theory and welfare economics theory,analyzing the mechanism that how education expenditure,medical and health expenditure and social security expenditure adjust the income gap between urban and rural residents.Secondly,doing statistical analysis about how the financial expenditure policy adjust the income gap between urban and rural residents of Liaoning Province.Selecting the urban and rural income level and structure to describe the urban and rural income gap.In describing the size and structure of fiscal expenditure,using statistical data to analyze education funding,health care and social security expenditure.Once again,using the empirical regression model to analyze the contribution of education,social security and health care expenditure to the adjustment of urban-rural income gap.The empirical results show that,education expenditure can expand the urban-rural income gap,while health and social security spending can narrow the urban-rural income gap.This also reflects the unreasonable structure of financial expenditure in Liaoning Province.Lastly,put forward the specific proposals to narrow the income gap between urban and rural residents learning from the successful experience of a typical country,and provide reference value for the development of Liaoning Province.