Research On The Effect Of Fiscal Expenditure Competition To The Efficiency Of Local Government Fiscal Expenditure

Since the reform and opening up,the scale of local government financial expenditure has been expanding.However,people's satisfaction in basic service areas such as education,medical care and social security is still low.This paper argues that the low efficiency of local government fiscal expenditure is the main reason for this contradiction.As the direct user of financial funds,the competitive behavior of local governments directly affects the financial expenditure,which will inevitably affect the efficiency of financial expenditure.Therefore,this paper studies the efficiency of local government's fiscal expenditure from the perspective of fiscal expenditure competition,which has certain reference significance for how to improve the efficiency of fiscal expenditure in the new situation and make up the gap between supply and demand of public products.First of all,this paper summarizes the theory and research methods of fiscal expenditure competition and fiscal expenditure efficiency,and then analyzes the mechanism of fiscal expenditure competition on fiscal expenditure efficiency.Considering the different preferences of local governments for different types of fiscal expenditure,this paper continues to divide fiscal expenditure into three categories: constructive expenditure,welfare expenditure and maintenance expenditure The competition of these three types of expenditure and their different effects on the efficiency of fiscal expenditure are studied respectively.Secondly,considering the economic,social and ecological benefits of fiscal expenditure,this paper selects the output indicators of fiscal expenditure,and uses the dea-bcc model based on the output perspective to calculate the fiscal expenditure efficiency of 30 provincial units in 2007-2017.Finally,based on the above results,the panel Tobit model is constructed to empirically analyze the impact of local government fiscal expenditure competition on its expenditure efficiency.The results show that:(1)most provinces of China,there is a loss of fiscal expenditure efficiency,and the level of local government fiscal expenditure efficiency is not high;in terms of regions,the central region has the highest fiscal expenditure efficiency,followed by the eastern region,and the western region is the worst,with obvious differences between different regions.(2)The competition of total fiscal expenditure restrains the improvement of fiscal expenditure efficiency,the competition of constructive expenditure also restrains the improvement of fiscal expenditure efficiency,and the inhibition is stronger;the competition of maintenance expenditure is positively related to fiscal expenditure efficiency,while the competition of welfare expenditure is not positively related to fiscal expenditure efficiency.(3)The competition of total fiscal expenditure and constructive expenditure has a negative impact on the efficiency of fiscal expenditure by influencing the scale efficiency of fiscal expenditure;the competition of maintenance expenditure has a positive effect on the efficiency of fiscal expenditure by influencing the pure technical efficiency of fiscal expenditure;the competition of welfare expenditure has no significant positive effect on the pure technical efficiency and scale efficiency.Finally,based on the above conclusions,this paper puts forward five suggestions: optimizing the scale and structure of financial expenditure,reasonably dividing the power and financial power,reforming and innovating the performance appraisal system,improving the mechanism of "voting with feet" and establishing and improving the mechanism of financial supervision.