Research On The Impact Of Fiscal Expenditure Structure On Income GAP Between Urban And Rural Residents

The 13th-Five Year Plan is the decisive period for China to complete a well-off society in an all-round way.One of the important goals of building a well-off society in an all-round way is to narrow the income distribution gap.However,as of 2018,China's Gini coefficient is 0.467,which reflects the problem of uneven income distribution of residents is still severe.Sichuan Province,an important province in the western region,is also facing the dilemma of uneven income distribution of residents.Since the income gap between urban and rural residents contributes more than 50% to the overall income gap,this paper focuses on the income gap between urban and rural residents in Sichuan Province.Finance has the function of regulating income distribution.The government mainly uses the tax and expenditure methods to play this role of finance.Although both taxation and expenditure can affect the income gap,Musgrave believes that fiscal expenditure can play a greater role in the case of a large income gap.In addition,in recent years,the focus of China's government fiscal function is gradually transformed from a long-term dominant “construction finance” to “people's livelihood finance”,and the government is paying more and more attention to the planning and arrangement of people's livelihood fiscal expenditure.Therefore,this paper defines the fiscal expenditure structure as the fiscal expenditure with education,medical and health,social security and employment,and agriculture,forestry and water affairs expenditure as the main content.Then this paper selects the panel data of 21 cities and prefectures in Sichuan Province from 2007 to 2016,and uses the analysis method combining normative and empirical to focus on the impact of these expenditures on the income gap between urban and rural residents in Sichuan Province,including the direction of impact and the improvement effect.Through research,this paper mainly has the following findings: First,using the Gini decomposition method analysis,the inequality of wage,property and transfer income exacerbates the inequality of urban and rural income in Sichuan Province.On the contrary,the operating income is not.Among them,the wage income gap explains the Gini coefficient of urban and rural total income by more than 70%.Second;in terms of the direction of influence,by constructing an individual fixedeffects model,it is found that education,social security and employment,as well as agriculture,forestry and water affairs expenditures can narrow the income gap between urban and rural residents.Health care expenditures have increased the income gap between urban and rural residents in Sichuan Province due to the problem of insufficient total investment and serious urbanization;Third,in terms of regulation efficiency,the DEA method is used to find that the overall fiscal expenditure structure of Sichuan Province has a low efficiency of comprehensive adjustment of the income gap between urban and rural residents.The technical inefficiency of fiscal expenditure mainly comes from purely technical ineffective rather than ineffective.And the average overall efficiency difference between cities and states is obvious.In order to make the fiscal expenditure structure play a proper income distribution function and improve the improvement effect,this paper proposes corresponding policy recommendations from the following points:(1)Accelerating the urban-rural integration construction and increasing the income of rural residents;(2)Adjusting the structure of education expenditure to create a fair environment for the accumulation of human capital in urban and rural areas;(3)Increasing the proportion of medical expenditure in total fiscal expenditure,and coordinating the urban and rural medical and health system;(4)Optimizing the structure of social security and employment expenditure,and improving the coverage of urban and rural areas;(5)Arranging expenditures on agriculture,forestry and water affairs rationally,and striving to improve agricultural production efficiency;(6)Strengthening fiscal expenditure management innovation to improve pure technical efficiency and the efficiency imbalance between cities and states.