Research On The Impact Of Fiscal Expenditure On People’s Livelihood On Urban-Rural Income Gap

Common prosperity is an essential requirement of socialism and an important feature of Chinese-style modernization.As one of the challenges in the process of promoting common prosperity,the income gap between urban and rural residents has become increasingly severe in recent years.A large income gap between urban and rural residents will inhibit economic development and is not conducive to maintaining social fairness and stability.As one of the important means of adjusting income distribution,fiscal expenditure plays a positive role in narrowing residents’ income gap and improving people’s well-being.In particular,the natural fiscal expenditure guarantees residents’ basic living needs in education,medical and health care,social security and employment,which reflects the public nature of finance.The fruits of reform have benefited more and more equitably all over the country.However,so far,local governments still have problems such as small scale of financial expenditure on people’s livelihood and unreasonable allocation of financial funds,which affect the function of people’s livelihood financial expenditure in income redistribution.In order to explore the relationship between the financial expenditure on people’s livelihood and the income gap between urban and rural residents under the background of common prosperity,this thesis first introduces the background and significance of the research,systematically combs the relevant literature of domestic and foreign scholars,summarizes the previous research results and shortcomings,and puts forward the research idea of this thesis on this basis.The research methods and contents of this thesis are explained,and the innovation and deficiency of this thesis are pointed out.Secondly,it analyzes the concepts of "people’s livelihood fiscal expenditure" and "urban-rural income gap",and takes "welfare economics","Marxist theory","socialism theory with Chinese characteristics" and other relevant theories as the theoretical basis of this thesis.It also analyzes the influence mechanism of education expenditure,medical and health expenditure,social security and employment expenditure on the income gap between urban and rural areas.Then this thesis analyzes the income gap between urban and rural residents in our country from the perspective of changes in income gap between urban and rural residents,income sources comparison as well as the income gap between urban and rural residents in different provinces,and the people’s livelihood finance expenditure status quo from the perspective of the people’s livelihood finance expenditure scale,the people’s livelihood finance expenditure structure and the people’s livelihood finance expenditure scale comparison of different provinces.Lay the foundation for the empirical analysis after.Then,this thesis takes the statistical data of variables in 31 provinces(municipalities)from 2007 to 2020 as samples,and takes education expenditure,medical and health expenditure,social security expenditure and employment expenditure of three types of people’s livelihood expenditure as core explanatory variables.And using the spatial Dubin model to analyze the three types of livelihood fiscal expenditure on the income gap between urban and rural residents.In the empirical analysis of the spatial Dubin model,it can be found that the income gap between urban and rural residents between provinces has obvious spatial correlation,and the positive spillover effect is significant,indicating that for a province,its urban-rural income gap will be affected by the urban-rural income gap in the same direction of the neighboring provinces.Education expenditure and social security expenditure play a positive role in widening the urban-rural income gap in this region,while medical and health expenditure can narrow the urban-rural income gap,but not significantly.Education expenditure and medical and health expenditure have a significant negative spatial spillover effect,which can narrow the urban-rural income gap in neighboring provinces,while social security and employment expenditure have a positive spatial spillover effect,which will further widen the urban-rural income gap in neighboring provinces.Based on the empirical results,this thesis provides policy recommendations from four aspects:strengthening regional cooperation and exchange,optimizing the system of education expenditure,perfecting the mechanism of medical and health expenditure and improving the social security expenditure system,in order to narrow the income gap between Chinese urban and rural residents,help the realization of common prosperity.