Features of the Chinese administrative system and the expansion of fiscal expenditures

The overly rapid expansion of fiscal expenditure is an issue the government should take seriously.There are two major causes for the expansion of fiscal expenditure--stress caused by the demand for public goods and stress caused by the features of the administrative system.The influence of the administrative system on fiscal expenditure is demonstrated through the following aspects--the definition of government functions,the development concept of government as well as hierarchies and department setting of governments.The features of China’s administrative system strongly boost the expansion of fiscal expenditure.It is displayed through the concept of rapid development at all government levels,relatively broad definition of government functions,the manifold departments and multi-level settings in the government.The Chinese governments should attach great importance to this issue and take proper measures to relieve the conflict.Some suggested measures include weaving appropriate capital restrictions into government planning,improving the methods of setting targets in planning,building a coordination mechanism for departmental budgets,practicing expenditure budget performance evaluation and releasing the results,as well as adjusting the hierarchical setting of governments.

Fiscal Expenditure Structure and Environmental Pollution：Empirical Research Based on the Panel Threshold Model

Based on China＇s provincial panel data from 2004 to 2014,the net effect and threshold characteristics of local governments＇ fiscal expenditure structure on environmental pollution were tested with the nonlinear panel threshold model. The results showed that the net effect of fiscal expenditure structure on regional pollution emission intensity had significant inverted V-shaped single threshold characteristics. Besides,the threshold value of economic density was 6. 039 6 million yuan/km^2,and that of population density was 201 people/km^2. That is,the fiscal expenditure structure inclining to productive expenditure was relatively conducive to the promotion of pollution reduction in the areas with low economic density or low population density. The fiscal expenditure structure inclining to non-productive expenditure was relatively conducive to the promotion of pollution reduction in the areas with high economic density or high population density.

A Study of the Impact of Fiscal Decentralization on the Efficiency of Public Health Expenditure

In this present-day global pandemic that has not been completely resolved,health is a major concern among people,and correspondingly,people are demanding higher standards for public health products and services provided by the government.In this paper,we measure the technical efficiency of public health expenditure in each province by using the data envelopment analysis(DEA)model,and examine the impact of decentralization on the efficiency of public health expenditure under the fiscal decentralization system using the panel data from 31 provinces from 2012-2019 in a panel model subject to fixed effects.

The Analysis of the Agriculture Input and Output Efficiency Based on DEA Model

Fiscal agricultural expenditure has been increased rapidly for a long time,but ＂Agriculture,Countryside and Farmer＂ issues have not yet been resolved fundamentally,which illustrates that the main direction of fiscal agricultural expenditure and the appropriate intensity of input have not been discovered exactly before implementing the policy.This thesis analyzed the agriculture input and output efficiency by input-DEA model,and then summarizes bygone problem about fiscal agricultural expenditure.At last,some effective suggestions were proposed about optimizing the agriculture input and output efficiency.

Something in Common

BROADLy speaking,for the past four years we have been talking about how momentum loss in the Chinese economy is inevitable,and will continue.Put plainly,the near-term headwinds are just too big.Industrial performance and fixed asset investment are still too highly correlated to policy and credit.

Sub-Provincial Fiscal Expenditure Decentralization Structure:A Case in China

This paper uses the data from the post-1994 tax reform in China to investigate the vertical and spatial structures of sub-provincial fiscal expenditure decentralization(SPFED)in China.The study shows that,on the whole,SPFED tends to be gradually biased toward the county level,but inter-provincial differences are obvious,and the provincial centralization is more obvious in less economically developed regions.In terms of expenditure items,the province level enjoys a relatively higher level of economic expenditure decentralization(EED),and the county level enjoys a higher level of social expenditure decentralization(SED).In terms of internal structure,the difference in the level of EED shared by the province,prefecture and county levels is relatively smaller and the difference in the level of SED is relatively larger.In terms of spatial structure,in less developed regions,the province level enjoys a higher EED but a lower SED;in developed regions,the prefecture and county levels enjoy a higher EED but the prefecture level enjoys a relatively lower SED.These findings can provide empirical evidence for the reform of the division of power and expenditure responsibility,as well as the governance of sub-provincial governments.

The size and structure of China’s full-covered fiscal expenditure

According to the standard of IMF(2001),I measured the size from 2003 to 2012 and the structure in 2012 of China’s full-covered fiscal expenditure.Furthermore,I compared the size of China’s fiscal expenditure with OECD countries.I find that as China is going through the“dual-peak”period:the peak of infrastructure development and social welfare expansion,the overall financial expenditure share of GDP has risen from around 31%in 2003,to around 37%in 2012.The ratio of infrastructure expenditure to whole fiscal expenditure is about 39%,while spending on social welfare is only about 41%.

How County-Level Agricultural Loans and Fiscal Expenditure Impact Rural Residents＇ Income in China——An Empirical Study of the Hierarchical Effect by Quantile Regression

Using cross-sectional data from 853 counties in 11 western China provinces, we employ quantile regression （QR） and instrumental variable quantile regression （IVQR） to investigate the hierarchical effect of fiscal expenditure and agricultural loan on rural residents＇ income. We find： （1） the relationship between agricultural loan and income is consistent with the inverted U-shape （Kuznets curve）; （2） the coefficient of quantile regression for rural residents＇ loan gradually decreases; particularly, the impact on the high-income group is insignificant （at 0.90 quantile）; （3） for 0.10 and 0.50 quantile, the increase of fiscal expenditure would hinder rather than promote income growth; （4） the restraining effect becomes more pronounced for the lower groups; in contrast, there is a significant positive relationship between income and fiscal expenditure for 0.90 quantile＇s income group. Implications for government policy formulation are propounded accordingly.

Fiscal Expenditure,Trade Openness and Income Distribution

As a policy tool of income redistribution,fiscal expenditure cannot change the unfair primary distribution caused by trade openness.Moreover,the effect of trade openness on the scale of fiscal expenditure distorts its income redistribution effect.This paper’s empirical analysis shows as follows.(1)Both fiscal expenditure and trade openness expand income gap on the whole.(2)Whatever budget structure and expenditure category,fiscal expenditure cannot affect the scale of trade openness significantly,which means that fiscal expenditure cannot indirectly affect trade openness’income distribution effect through its scale.(3)Trade openness can reduce the scale of public finance expenditure and most categories’fiscal expenditure,which means that trade openness can indirectly affect fiscal expenditure’s income redistribution effect through its scale.Therefore,trade openness will limit and distort fiscal expenditure’s income redistribution effect.While improving the income distribution effect of fiscal expenditure,we should also recognize that this effect is limited.

A Study of Productive Expenditure Bias in County-level Finance in China

Being responsible mainly to their superiors, decision-makers at the county level in China pursue the maximum growth rate rather than their residents’ welfare. This leads to a preference for productive expenditure in their fiscal decisions. An empirical test based on 2,067 counties (cities) provides robust evidence for the existence of productive expenditure bias at the county level. Such bias causes a serious impediment to the construction of a system of public finance and the transformation to public service-oriented government in China. An appropriate solution to this problem is to gradually enhance incentives for county- level governments to satisfy the demands of local residents.View full textDownload full text