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EDMI002.pdf

Article Title : The Influence of Welfare Fiscal Expenditure of Shandong Province on the Urban-rural Income Gap
Author(s) : Yucan Li
Corresponding Author : Yucan Li
Keywords : Urban-rural income gap, Fiscal expenditure, Welfare fiscal expenditure.
PDF : http://download.BCPub.org/proceedings/2020/EDMI2020/EDMI002.pdf
Abstract

In recent years, China’s economy has developed rapidly, and the urban-rural income gap has remained high, even expanding. As an important means for the state to regulate income distribution, finance plays an important role in regulating the urban-rural income gap. This article takes Shandong Province as an example, studies the urban-rural income gap and the current status of welfare fiscal expenditure through theoretical analysis, and uses the data of Shandong Province from 2007 to 2018 to analyze the impact of welfare fiscal expenditure on the urban-rural income gap and obtain the conclusion: The increase will widen the urban-rural income gap. The increase in social security expenditures and agricultural support expenditures will narrow the urban-rural income gap, with the greatest impact on agricultural support expenditures, followed by social security expenditures, and education expenditures. Based on the research results, suggestions were made to improve the fiscal expenditure structure, expand basic education expenditures, increase social security expenditures and support agricultural expenditures.

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