Impact of Public Finance Budget Expenditure on Per Capita Disposable Income in China

Nearly ten years, with the rapid development of China’s economic, the per capita disposable income in China has significantly increased. And China's annual public budget expenditure has also increased year by year. However, the factors which influence per capita disposable income are diverse. This study collects data from five aspects of the payment of public finance, and first reduces the dimension through factor analysis, then studies the relationship between these factors and per capita disposable income by linear regression. Besides, add other variables that affect per capita disposable income and carry out regression analysis again. The conclusion shows that there is a significant positive relationship between them, the per capita disposable income also increases with the increase of public budget expenditure. The purpose of this study is to help us understand the economic effects of fiscal policy and provide a basis for achieving more fair, open, competitive and orderly social and economic development.