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

Qifei Peng; Xingyue Huang; Nan Jin; Hangjie Li; Huan Liu

doi:doi:10.11648/j.ijefm.20221005.16

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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

Qifei Peng, Xingyue Huang, Nan Jin, Hangjie Li, Huan Liu

Published in International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 5)

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), 2024. 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
N1  - https://doi.org/10.11648/j.ijefm.20221005.16
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
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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

Qifei Peng

School of Customs and Public Economics, Shanghai Customs College, Shanghai, China
Xingyue Huang

School of Customs and Public Economics, Shanghai Customs College, Shanghai, China
Nan Jin

School of Customs and Public Economics, Shanghai Customs College, Shanghai, China
Hangjie Li

School of Customs and Public Economics, Shanghai Customs College, Shanghai, China
Huan Liu

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

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Plain Text BibTeX RIS

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}
}

Copy | Download

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
N1  - https://doi.org/10.11648/j.ijefm.20221005.16
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  -

Copy | Download