Under The Supply-side Reform:A Research For Optimizing The Structure Of Financial Expenditure In Hunan Province

It is well known that Hunan Province locates at a significantly special area which covers a vast territory?large population and abundant natural resource.In 2015,the GDP of this province was 290472 billion yuan,raising 8.6% year on year growth;the Fiscal Revenue has reached4008.1 billion yuan,an increase of 10.2 percent over the previous year and the Financial Expenditure was 5684.5 billion,up 13.3%.During the deepening reform,the contradiction in the structure of financial revenue and expenditure has become increasingly evident,and the two aspects of local economy(quality & structure)were closely affected by any adjustment and distribution from the structure of financial expenditure.Therefore,with continuously deepen of the reform in fiscal and tax system,there are some vital issues for building up society in all-round way,which includes how to optimize public expenditure,promoting supply-side structural reform and facilitating the transform for the driving force in economy development.This paper is on the basis of the domestic and foreign related theories and research methods by analyzing the financial expenditure andthe changing trend of the proportion in Hunan Province over the past decade while comparing these data with Guangdong Province and Hubei Province.It sorts out the problems in Hunan financial structure,which are low fiscal self-sufficiency rate,high elasticity coefficient in the cost,non-flexible expenditure structure and non-normative expenditure management.So combining with the supply side reform principles,In order to optimize the expenditure structure of Hunan province,I put forward to set up the concept(innovation,cooperation,green,openness and sharing),and obtain deleveraging by improving creatively the quality of fiscal revenue,cutting excess urban real estate inventory by sharing the reform of fiscal and tax system,improving weak links through coordinating the structure of cost,cutting excessive industrial capacity by adjusting greenly fiscal policies and cutting cost by the opening-up strategy which means strengthen the financial expense management.Specifically,the approach is to determine revenue targets accurately,grasping of income quality hardly,maintaining sustainable resources unremittingly,promoting the comprehensive development of urban and rural,supporting education,reviving the employment and social security policy,promoting the health reform,flourishing culture and sports;laying the groundwork for financial management,strengthening financial management by law,promoting the publicity of financial information.In a word,it will provide a support financial system for thesupply side reforms by improving the efficiency of fiscal expenditure of Hunan through innovation and reform.It is innovative that the paper is not only using GDP growth as the objective of optimizing the structure of fiscal expenditure,but also building on the perspective of promoting supply-side reform,and trying to find a potential way to optimize the local financial expenditure,so that it provides some reference for promoting the social development of Hunan Province and the central region of China.