The Impact Of Expenditure Structure Optimization On Narrowing The Income Gap Between Urban And Rural Resident

Improving income distribution and narrowing the income gap are important conditions for the common prosperity of the Chinese people.In the current new round of western development strategy,in order to achieve the purpose of the "second hundred years",eliminating the income difference is an urgent problem to be solved.Income distribution function is one of the three functions of finance.The state machine can redistribute national income from a macro perspective by means of fiscal means,and the adjustment of the structure of fiscal expenditure is also one of the important measures for the state to fulfill the function of fiscal income distribution.Through the optimization of the structure of expenditure and the adjustment of expenditure policies,social equity and common prosperity of the people can be better promoted.In the theoretical significance,this paper explores the connotation of the structure of the government’s fiscal expenditure,clarifies the fiscal expenditure items directly related to the income,and focuses on the issue of common prosperity of the people,which was emphatically put forward in the twenty major reports.In a practical sense,the model is used to discuss the estimated effect of regulation and control of fiscal expenditure projects from different points of the urban-rural income gap.Finally,suggestions are made in order to contribute to reducing the income gap between urban and rural residents in western China and realizing common prosperity.This paper firstly analyzes the connotation of the structure of fiscal expenditure and the income gap between urban and rural residents,expounds the theoretical basis of this paper,and straightens out the mechanism of the influence of fiscal expenditure on the income gap between urban and rural residents.Next,it analyzes the current situation of urban-rural income gap in western China.It measures the urban-rural income gap through the calculation of Theil index,and analyzes the changes and difficulties it faces.Then from the overall structure of fiscal expenditure to itemize one by one to list its development and descriptive analysis.After the empirical test,the panel data from 2007 to 2020 are used to study and analyze how the structure of fiscal expenditure influences the income gap between urban and rural residents in western China by using quantile model.On this basis,relevant policy suggestions are put forward to promote the optimization of the structure of expenditure.The results show that: 1.In terms of the income gap between urban and rural residents,the differences between urban and rural areas and the differences within urban and rural areas generally show a downward trend;2.From the perspective of the change of the structure of fiscal expenditure in the western region,the number of various fiscal expenditure items has increased due to the absolute increase of fiscal revenue caused by economic development over the years,but the proportion of various expenditure items in the total expenditure has increased or decreased.The conclusion shows that the structure of fiscal expenditure of the government in the western region has been intentionally optimized and improved.This will help narrow the urban-rural income gap.3.In terms of the influence of fiscal expenditure structure on the income gap between urban and rural residents,the urban bias of general public service expenditure,education expenditure,medical and health expenditure and social security and employment expenditure,the increase of these expenditures may have a negative effect on the bridging of the income gap between urban and rural residents.In areas with a large income gap between urban and rural areas,the increase in expenditure on agriculture,forestry,water and transport will significantly inhibit the income gap between urban and rural areas.Finally,according to the empirical results,the paper puts forward some relevant policy suggestions: to promote the optimization of the structure of fiscal expenditure,improve the urban bias characteristics of some expenditure policies;To optimize the income structure of western local governments to prevent and defuse major risks;We will deepen the new rural cooperative medical care system and promote a new type of urbanization.