Research On The Optimization Of Fiscal Expenditure Structure Of Local Government

In recent years,the balance between local fiscal revenue and expenditure is becoming more and more prominent.As with the income,under the conditions of complex economic situation,reform of the financial system and so on,profit of many corporates is declining,it is more and more difficult to achieve a continuing growth for local fiscal revenue.At the same time,the established New Budget Law and series of national rules begin to standardize the borrowing and financing behaviors of local government both in balance and limitation and force local government to strengthen their management,thus the local government financing channel is tighter.In terms of expenditure,the demand for social public services keeps increasing,thus the balance between local fiscal revenue and expenditure is more obvious.The most effective way to solve this contradiction is to optimize the structure of local fiscal expenditure.This paper applies relevant theories of the optimization of fiscal expenditure structure,and takes the datum of Ninghai's whole fiscal expenditure and expenditure structure from 2007 to 2017 as an example to make vertical analysis and horizontal comparison with others.Through the comparative analysis,we find that the administrative expenditure and construction spending of Ninghai is too high,while the expenditure of public service is so much lower.To solve the above problems the government of Ninghai should strictly control the scale of administrative expense,transform the government function,give full play to public financial function,make clear divisions of governmental authority and financial power at all levels of government and improve the skills of fiscal expenditure management,thus to promote the optimization of fiscal expenditure structure.