Public Spending Structural Change of Fujian Province from 1978 to 2006: Based on the Perspective of Government Functions Transformation

Chinese government has transformed the function of economy-construction-type to public-service-type under the guidance of scientific concept of development. The transformation of government functions undoubtedly require public spending structure also make corresponding changes. The purpose of the paper is to identify and verify what changes have taken in public expenditure structure of Fujian province by empirical method based on nearly 27 years of financial data. Empirical results show that public expenditure structure of Fujian Province has shift to the public service-oriented, but there are still some problems in the transition process. The government should take countermeasures and make targeted policy to optimize public expenditure structure.