How People’s Livelihood Fiscal Expenditure Affects Urban-Rural Consumption Inequality

The last 40 years China’s rapid economic and social development,the people’s living standards have also been a qualitative leap,but the consumption gap in the process of economic growth has continued to expand.The expansion of urban and rural residents’ consumption gap not only affects the realization of common prosperity goals,but also does not meet the requirements of the current "shared development" concept.Therefore,it is of great theoretical and practical significance to study the causes of the widening gap between urban and rural residents.Based on the people’s livelihood,this paper focuses on the part of the people’s financial expenditure in the government’s financial expenditure,and studies the mechanism and impact of the people’s livelihood expenditure on the urban and rural residents’ consumption gap through horizontal regional and vertical time.This paper combines normative analysis and empirical analysis to quantitatively grasp the structure of people’s financial expenditure,and further understand and analyze the reasons for the widening gap between urban and rural residents and the trend of change,and put forward reasonable and effective policy recommendations on this basis.The first part is the introduction,which includes the research background,the research purpose and the significance of the research,and the ideas,the content framework and the research methods of this paper are combed.On this basis,the possible innovation of this paper is put forward.And from the gap between the formation of urban and rural residents the reasons for the formation of the people’s livelihood and urban-rural consumption gap between the two aspects of combing the relevant literature at home and abroad for the follow-up analysis of the article to provide a theoretical reference.In the second part,on the basis of clarifying the structure of the people’s financial expenditure,this paper analyzes the mechanism of the people’s livelihood finance’s effect on the consumption gap between urban and rural residents in theory,and lays the theoretical support for the follow-up empirical analysis.The third part,respectively,the urban and rural residents consumption gapbetween the status quo and evolution and the development of the people’s livelihood and financial expenditure to describe the process and analysis.The evolution of the consumption gap between urban and rural residents is divided into two aspects: the absolute consumption gap and the relative consumption gap.The development of the people’s financial expenditure on the choice of education spending,health care expenditure and social security expenditure were described for the follow-up empirical analysis to provide a realistic basis.In the fourth part,based on the previous theoretical analysis,the static panel data model and the dynamic panel data model are established to do empirical analysis.Respectively,from the vertical and horizontal analysis of two levels.In the study of the longitudinal regional differences,the sample intervals were treated in different time periods,and the dynamic GMM(DIF-GMM and SYS-GMM)method was used to investigate the effect of the time-The Impact of Fiscal Expenditure on the Consumption Disparity between Urban and Rural Residents.The results show that the "supply side" and "supply side structure" of people ’s fiscal expenditure affect the level of consumption demand of urban and rural residents and the structure of consumption demand.In comparison,the effect of education expenditure on the consumption gap between urban and rural residents is the greatest,the effect of social security is the second,and the effect of medical and health expenditure is the least.The social security is positively related to the consumption gap between urban and rural residents,while the expenditure of health care and education expenditure is negatively related to the consumption gap between urban and rural residents.In the fifth part,based on the result of normative analysis and empirical research,the author puts forward the policy suggestion to control the consumption gap between urban and rural residents: the government should consummate the structure of public expenditure from the supply side,optimize the structure of consumption demand,change the urban bias to urban-rural equality Coordinated development,so as to improve the level of rural "demand and consumption",iron out the gap between urban and rural people’s financial allocation,and promote the coordinated development of urban and rural consumption.First,in the redistribution of national income,shouldcontinue to improve the "people’s livelihood and financial expenditure" proportion,"big cake." The second is to optimize the people’s livelihood expenditure structure,"cut a good cake." Priority to increase rural education,health,social security,agriculture,water and other key areas of investment,increase rural residents expected income,enhance their spending power and dare to consumer confidence.The third is to strengthen the basic public livelihood services at all levels of the main responsibilities and the implementation of the main responsibility,efforts to promote the equalization of basic public services between urban and rural areas,ironing the gap between urban and rural financial distribution,Psychological expectations,improve the final consumption level,and gradually narrow the urban and rural residents consumption exposure.