Does Digital Government Help Local Governments "Cut Costs"?

China proposes to accelerate the construction of network power and digital China. The in-depth promotion of digital government reform and construction is an inevitable requirement to adapt to the trend of the informationization development era and accelerate the construction of digital China. However, the relevant research is still insufficient about what impact digital construction will have on the government's financial expenditures. Under the epidemic situation, the financial burden of each region is large, and it is necessary to explore effective ways to “cut costs” for the government. Based on the experience of China's provincial digital economy construction, we analyze the impact of digital government construction on government financial expenditure from the theoretical aspect. On this basis, it is proposed to make full use of modern information technology to promote the construction of digital government in order to optimize the allocation of government financial resources and reduce the financial burden of the government. This paper provides policy suggestions for provinces to promote digital construction, facilitate government information sharing, improve government efficiency, and make full use of modern information technology to rationalize the structure of local government fiscal expenditure.