Vertical Fiscal Imbalance,Public Expenditure Bias and Local Budget Executive Contraction
The reform of the budget system is an important part of the public finance moderniza-tion.The problem of the local budget executive contraction comprehensively reflects the insufficiency of government's budget management ability and macro-control ability.Based on the typical facts of Chinese fiscal decentralization,this paper makes use of the inter provincial panel data from 1997 to 2020 in China to conduct an empirical analysis on the multiple mechanisms and the impact effects of vertical fiscal imbalance and public expenditure bias on local budget executive contraction.The results show that the direct effect of vertical fiscal imbalance will aggravate the local budget executive con-traction,but the local budget executive contraction can be alleviated indirectly through the people's livelihood public expenditure bias.The heterogeneity analysis reveals that the bias towards livelihood expenditures in developed regions has deepened the local budget executive contraction,while theunem-ployment rates and economic development levels in developed regions can alleviate the local budget executive contraction.The mechanism analysis reveals that the vertical fiscal imbalance has generally aggravated the local budget executive contraction,and the irrational financial structure of central and local governments has deepened the local budget executive contraction.Therefore,in order to alleviate the local budget executive contraction,it is necessary to control the degree of vertical fiscal imbalance and adjust the distribution of fiscal power and administrative power between the central and local governments;optimize the structure of local government expenditure structure and increase the propor-tion of livelihood expenditure;further promote the reform of the modem budget system,alleviate the local budget executive contraction,and implement the key details of the budget system.
vertical fiscal imbalancepublic expenditure biaslocal budget executive contractionmodem budget system
万方数据
维普
