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The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019

Received: 18 September 2022     Accepted: 20 October 2022     Published: 24 October 2022
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Abstract

The budget is an important vehicle for the government to regulate the economy and allocate financial resources, and deviations in the execution of the budget and accounts will, to a certain extent, affect the government's ability to govern and the public's trust in the government. Keeping the deviation from the budget within a reasonable range plays a crucial role in establishing a modern budget system that is comprehensive, standardized, transparent, scientific and strong in restraint, and giving full play to the function of finance as the foundation and important pillar in national governance. Starting from government expenditure efficiency, the author studied the impact of budget deviation and government expenditure efficiency through the empirical analysis of Feasible Generalized Least Square (FGLS) model estimation based on theoretical analysis and using provincial panel data from 2007-2019, and obtained the following conclusions: (1) There is a significant negative relationship between local budget expenditure deviation and government expenditure efficiency. (2) There is a spatially significant negative relationship between local government budget deviation in education, social security and urban and rural communities on government expenditure efficiency in these areas. Therefore, this paper proposes: strengthening the management of local budget revenue and expenditure adjustments, improving financial performance management and administrative accountability mechanisms, and enhancing the implementation of the concept of scientific budgeting in practice.

Published in International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 5)
DOI 10.11648/j.ijefm.20221005.16
Page(s) 280-287
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Budget Deviation, Efficiency of Government Spending, Feasible Generalized Least Square (FGLS) Model

References
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  • APA Style

    Qifei Peng, Xingyue Huang, Nan Jin, Hangjie Li, Huan Liu. (2022). The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019. International Journal of Economics, Finance and Management Sciences, 10(5), 280-287. https://doi.org/10.11648/j.ijefm.20221005.16

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    ACS Style

    Qifei Peng; Xingyue Huang; Nan Jin; Hangjie Li; Huan Liu. The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019. Int. J. Econ. Finance Manag. Sci. 2022, 10(5), 280-287. doi: 10.11648/j.ijefm.20221005.16

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    AMA Style

    Qifei Peng, Xingyue Huang, Nan Jin, Hangjie Li, Huan Liu. The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019. Int J Econ Finance Manag Sci. 2022;10(5):280-287. doi: 10.11648/j.ijefm.20221005.16

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  • @article{10.11648/j.ijefm.20221005.16,
      author = {Qifei Peng and Xingyue Huang and Nan Jin and Hangjie Li and Huan Liu},
      title = {The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {10},
      number = {5},
      pages = {280-287},
      doi = {10.11648/j.ijefm.20221005.16},
      url = {https://doi.org/10.11648/j.ijefm.20221005.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221005.16},
      abstract = {The budget is an important vehicle for the government to regulate the economy and allocate financial resources, and deviations in the execution of the budget and accounts will, to a certain extent, affect the government's ability to govern and the public's trust in the government. Keeping the deviation from the budget within a reasonable range plays a crucial role in establishing a modern budget system that is comprehensive, standardized, transparent, scientific and strong in restraint, and giving full play to the function of finance as the foundation and important pillar in national governance. Starting from government expenditure efficiency, the author studied the impact of budget deviation and government expenditure efficiency through the empirical analysis of Feasible Generalized Least Square (FGLS) model estimation based on theoretical analysis and using provincial panel data from 2007-2019, and obtained the following conclusions: (1) There is a significant negative relationship between local budget expenditure deviation and government expenditure efficiency. (2) There is a spatially significant negative relationship between local government budget deviation in education, social security and urban and rural communities on government expenditure efficiency in these areas. Therefore, this paper proposes: strengthening the management of local budget revenue and expenditure adjustments, improving financial performance management and administrative accountability mechanisms, and enhancing the implementation of the concept of scientific budgeting in practice.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - The Impact of Deviation from Budgetary Expenditure on the Efficiency of Local Government Expenditure: An Empirical Analysis Based on Provincial Data from China 2007 to 2019
    AU  - Qifei Peng
    AU  - Xingyue Huang
    AU  - Nan Jin
    AU  - Hangjie Li
    AU  - Huan Liu
    Y1  - 2022/10/24
    PY  - 2022
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    DO  - 10.11648/j.ijefm.20221005.16
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 280
    EP  - 287
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20221005.16
    AB  - The budget is an important vehicle for the government to regulate the economy and allocate financial resources, and deviations in the execution of the budget and accounts will, to a certain extent, affect the government's ability to govern and the public's trust in the government. Keeping the deviation from the budget within a reasonable range plays a crucial role in establishing a modern budget system that is comprehensive, standardized, transparent, scientific and strong in restraint, and giving full play to the function of finance as the foundation and important pillar in national governance. Starting from government expenditure efficiency, the author studied the impact of budget deviation and government expenditure efficiency through the empirical analysis of Feasible Generalized Least Square (FGLS) model estimation based on theoretical analysis and using provincial panel data from 2007-2019, and obtained the following conclusions: (1) There is a significant negative relationship between local budget expenditure deviation and government expenditure efficiency. (2) There is a spatially significant negative relationship between local government budget deviation in education, social security and urban and rural communities on government expenditure efficiency in these areas. Therefore, this paper proposes: strengthening the management of local budget revenue and expenditure adjustments, improving financial performance management and administrative accountability mechanisms, and enhancing the implementation of the concept of scientific budgeting in practice.
    VL  - 10
    IS  - 5
    ER  - 

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Author Information
  • School of Customs and Public Economics, Shanghai Customs College, Shanghai, China

  • School of Customs and Public Economics, Shanghai Customs College, Shanghai, China

  • School of Customs and Public Economics, Shanghai Customs College, Shanghai, China

  • School of Customs and Public Economics, Shanghai Customs College, Shanghai, China

  • School of Customs and Public Administration, Shanghai Customs College, Shanghai, China

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