Research on the Causes and Responsive Measures of China’s Fiscal Expenditure Solidification
Journal of World Economic Research
Volume 7, Issue 2, June 2018, Pages: 82-91
Received: Aug. 4, 2018; Accepted: Aug. 23, 2018; Published: Sep. 28, 2018
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Li Yan, School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China
Peng Chao, School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China
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The budget enforcement, as an important indicator for measuring the collection and use of fiscal funds, plays an essential role in the promotion of Chinese reform. However, in recent years, Chinese fiscal expenditure has shown the tendency of solidification, which slows budget implementation progress, makes a large amount of financial funds can’t be efficiently paid, and sharpens the contradiction between the coexistence of “shortage” and “precipitation” of funds. That is to say, in the practice of China’s budgetary expenditure, the expenditure solidification directly constrains the implementation effect of budget expenditure, making the expenditure cannot be effectively paid. Therefore, this paper starts from the existing problems in the fiscal expenditure, systematically analyzes the historical basis and current situation of China's fiscal expenditure solidification. Through the analysis, it can be found the recent fiscal expenditure shows the convergence trend. That is to say in the context of increasing economic pressure, China’s fiscal expenditure show a uptrend situation, instead of decreasing in response to the declined fiscal revenue. Moreover, in China, no matter in central government or local governments, the scale and structure of education, medical, health care and other expenses have shown the convergence trend. The phenomenon is called China’s fiscal expenditure solidification, and the reason for this phenomenon include the inertia of legally mandated expenditure, the flaws in transfer payments system, the unscientific and unstandardized budget management process, and the contradiction between policy and system arrangement and practice. And in order to solve the problem, it should be started from the top-level design, completing the relevant measures and strengthening modern budget management.
Expenditure, Solidification, Budget
To cite this article
Li Yan, Peng Chao, Research on the Causes and Responsive Measures of China’s Fiscal Expenditure Solidification, Journal of World Economic Research. Vol. 7, No. 2, 2018, pp. 82-91. doi: 10.11648/j.jwer.20180702.15
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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