Statistical Analysis Of Local Government Fiscal Expenditure Preference Under The New Normal

China's economy growth rate has slowed down from the beginning of 2012,and becomes to be stable in 2015.that is,the new normal.China's main task is to accelerate the restructuring and economic development.The local government is vital to the economic transformation,and fiscal expenditure is vital to promoting economic development.along with the new normal,China's fiscal expenditure structure should also carry out transformation.Focusing on the development of the construction of people's livelihood has become the basic requirements under the new normal.The government should eliminate the spending pattern of GDP growth oriented.and develop the construction of the people's livelihood.This paper firstly analyze the current situation of fiscal expenditure of local government in China.In order to take on the influence of the fiscal expenditure statistics.the fiscal expenditure will be mainly divided into three categories:economic construction of fiscal expenditure.social expenditure and public sernice expenditure.This paper mainly analyzes the social expenditure index,including education,science.culture,health and social security.Through a comparative analysis of the fiscal expenditure structure.we find that there are still structural preferences in China's fiscal expenditure in these years.Since the new economic norm.although central government has urged local government to focus on the construction of people's livelihood and improve the overall level of social welfare,the local government improves the proportion of expenditure of the people's livelihood.but compared to the western country,China's livelihood spending projects are still insufficient.Next,this paper studies the internal mechanism of local government expenditure,which is based on the multitask principal agent model,theoretical research shows that the fiscal expenditure behavior of local government is affected by the intensity of central evaluation index.and the clear degree assessment of index will also affect the behavior of the local government.This paper verifies the theoretical model based on the theoretical research combined with Chinese actual situation.This paper estimates the provincial panel models by using the Eviews7.2 software,first of all,test the economic and social items of expenditure,the main conclusion is:due to the decentralization of the system.the local government prefers economic expenditure and ignore social spending.Then test on behalf of fiscal expenditure on livelihood subjects.The conclusions are as follows:first,the regression model results show that the regression model verifies the correctness of the theoretical model.that is when the central government specific the assessment indicators and promote assessment.the local government will strengthen the investment in the index on the project.Second,according to the results of analysis.since the new normal,local government has been strengthened to the medical expenditure investment,but other expenditure project investment is still insufficient which representatives of the people's livelihood.China should improve the assessment mechanism,make efforts to assess the people's livelihood expenditure project,and improve the level of public services.