Study On The Efficiency Of Local Fiscal Budget And Budget Expenditure

With the successful convening of the 19 th CPC National Congress,improving the economic development mode,optimizing the structure of economic development,promoting high-quality economic growth,and increasing people's sense of gain have gradually become the key to China's development.This article expects to improve the fiscal revenue and expenditure in the region by studying regional development patterns and measuring the efficiency of regional fiscal revenue and expenditure.According to the macro-prudential approach,when it is difficult for a region's development to reach equilibrium through the market,it is necessary for our local governments to fill in regional deficiencies and maintain the stable development of the regional economy by selecting appropriate budgetary or economic policies.Therefore,the editors hope that this article can give local governments some policy references and optimize the financial revenue and expenditure structure to effectively resolve regional debt problems and realize regional sustainable development.As China's economic development has entered a new normal,regional fiscal revenues and expenditures have shown different trends,and have shown a tendency to deviate from expansion.At the same time,what makes us even more surprised is that the financial gaps in some areas with similar economic conditions have also shown different trends in recent years.Therefore,the main task of this paper is to analyze the reasons for the deviation of local fiscal budget revenues and expenditures by constructing corresponding models,and to try to solve the fiscal deficits in some areas.With the differentiation of fiscal revenues and expenditures in various regions of our country,a long-term and effective theory and method for the budgetary budget of local public finances needs to emerge.In terms of methodology,we examine the income and expenditure efficiency of local public finance budgets by analyzing cross-sectional data for 31 regions in China in 2006-2016.In the selection of measurement methods,the author believes that the OLS regression model can only make a simple analysis.This article does not only consider the factors that affect the budget of the local public finance budget,but also needs to consider the technical efficiency of each local public financial budget and the factors that affect efficiency.Moreover,when we attempt to use the SFA model(stochastic frontier model)to analysis,we finds that the inefficiency factor accountsfor a large proportion in the measurement process and the inefficiency cannot be ignored.Therefore,the SFA model(stochastic frontier model)is necessary but not the OLS regression model.In the specific selection of the SFA model function,the local public budget budgetary expenditure and the local public budgetary budget expenditure are correspondingly distinguished.For local public budget revenue,we chose the C-D production function in the SFA model.We believe that fiscal revenue is consistent with the output in input-output model,and for the selection of input factors,considering that most of the local public financial budget revenue comes from taxes,we can increase the local income(output)through the tax rate.For the local public finance budget expenditure,we can regard it as a cost of the local government from a macro perspective.We use local GDP as output and input variables to select local price indices.The reason why we choose the price index is that it is due to the desirability and practicality of the data.Second,the price index can be used as a payment for economic development(GDP growth usually With the rise of the price index,the cost of economic development also will increase,such as inflation).Therefore,the C-D cost function in the SFA model is used for analysis.The research results show that there are different levels of technical efficiency losses in the revenue and expenditure of local government fiscal budgets.Local governments can increase local surplus by improving some indicators,and they can also increase technical efficiency by learning from the development model of other better performing regions.The conclusions of this paper can serve as a reference for local governments and provide new ideas for the sustainable growth of their budgets.For our research results,first,we found that the high-quality development of the regional economy has a catalytic effect on the technical efficiency of the local government's fiscal budget,such as the increase in per capital GDP.Second,we found that the structure of the economic industry also has a great impact on fiscal revenue and expenditure.For example,if the economic structure is closer to the tertiary industry,the regional government budget performance is better,and the economic structure is closer to the primary industry,the regional government budget performance is bad.Therefore,all regions of our country should complete economic restructuring and upgrading as soon as possible,and strive to shift from the traditional primary industry to the secondary and tertiary industries.Finally,our conclusion can provide local governments with corresponding policy references.Local governments can choose from their own development requirements in the mode of economicdevelopment.For example higher fiscal revenues or better revenue and expenditure efficiency.In any case,in order to promote the better development of China's economy,the primary purpose of local governments should still be to push the region's economy to a higher quality development model so as to promote the long-term sustainable development of the economy.