The Study Of The Public Expenditure Influence On Urban-rural Residents' Incomes Gap

After forty years of reform & opening up,there has been a economic boom in China's development.In resent years,China remained on the second of the world economic ranking,and had made great contributions to the world economic growth.But behind the continuous development of economy,income gap of residents has been gradually emerged and become to a point that cannot be ignored.The main reason for the gap of income distribution between residents is the increasing income gap between urban and rural residents.The Party Central Committee of our country has clearly realized the seriousness of the problem of unbalanced development.A series of policies make the income gap between urban and rural residents have eased over the past ten years.But generally speaking,the income gap between urban and rural areas is still higher than “1.5 to 2 times” which was suggest by international scholars.Similar to the whole country's situation,Anhui's economy is developing rapidly,but it also faces the problem of widening income gap between urban and rural residents.This embarrassing situation not only hinders the development of society,but also affects the fairness,justice,harmony and stability of the society.But because of blindness and profit,the simple market economic means can not restrain the deterioration of the income gap and further deepen this situation.Therefore,the means of financial expenditure can better help the coordinated development of urban and rural economy.It is also necessary to study the effect of financial expenditure on reducing the income gap between urban and rural residents.As far as western classical economic theories are concerned,fiscal expenditure plays a positive role in promoting economic development.However,the impact of different fiscal expenditure projects on the income gap of residents is inconsistent.Therefore,it is also valuable to further explore the impact of different structures on the income gap between urban and rural residents on the basis of fiscal scale.In view of the above two points,this paper is discussed from the following sections.The first chapter is the introduction department,focusing on the background of the topic and the significance of the topic,and making a comprehensive review of the research at home and abroad and then briefly summarizing the research content and methods of this paper and finally summarizing the possible innovations and shortcomings of this paper.The second chapter is the theoretical part of the article,which first introduces the financial thought in Marx's classical theory,the income distribution theory in welfare economics,the income redistribution theory of Mead and the theory of Keynes' s fiscal expenditure; secondly,it briefly reviews the mechanism of the influence of the structure of fiscal expenditure on the income gap between the urban and rural residents.The third chapter is a statistical analysis of the income gap between urban and rural residents in Anhui province and the status quo of fiscal expenditure.The income gap between urban and rural residents is analyzed from the perspective of income growth,income gap and the gap between urban and rural residents in Anhui province.Then we will discuss the change track of fiscal expenditure from scale and expenditure structure respectively.The fourth chapter investigates the impact of the scale and structure of Anhui's financial expenditure on the income gap between urban and rural residents by using the method of vector auto-regression and panel data analysis.The last part is the policy recommendations section of this paper.Based on the qualitative and quantitative analysis of the previous four chapters,the appropriate recommendations are put forward.With the help of research,this paper summarizes several conclusions: first,the income gap between urban and rural residents in Anhui province has a decreasing trend,but there is still room for improvement,and we should pay attention to it.Second,compared with the national level,the income gap between urban and rural residents in Anhui is relatively small;third,from the scale of expenditure,the size of Anhui province and public finance expenditure has a certain effect on reducing the income gap between urban and rural residents,but there is a timeliness;fourth,the influence of social security expenditure and science and education expenditure on the income gap between urban and rural residents from the structure of financial and political expenditure With the expanding role of supporting agriculture and medical expenditure,we have narrowed the income gap between urban and rural residents,but the expenditure on supporting agriculture is not significant.On the control variables,the level of economic development and urbanization is conducive to the reduction of income gap between urban and rural residents.Through the empirical and theoretical research results,some suggestions are put forward to reduce the income gap between urban and rural areas in Anhui province.First,the fiscal expenditure needs to be improved on scale and structural optimization;second,the scale and efficiency of the agricultural expenditure should be improved and the agricultural development should be improved;third,the rural social security mechanism is optimized,the urban and rural social security system is improved,and fourth,the coordination of urban and rural science and technology is coordinated.Education and culture expenditure,adjust the focus of education investment;fifth,improve the scale of medical and health expenditure,improve the rural medical and health environment;sixth,industrial coordinated development,to achieve multiple increase in income.