Discussion on the Influences of Government's Increasing the Expenditure for People's Livelihood on Rural Residents' Consumption in China

Since Chinese government has complementednew policiesin rural area in 2004,the government has increased fiscal expenditure in education,medicare and other people's livelihood aspects,one goal of the policy is to increase rural residents' consumption level.However,the empirical study shows that increasing fiscal expenditure in education and medicare plays an obvious role in promoting rural residents' private goods consumption indeed,but its effect in reducing rural residents' expenditure in private education and medicare is not obvious.