Analysis of the Regional Differences in the Fiscal Expenditure for the Social Security in China

The imbalance of the economic development in China leads to the existence of the regional differences in the fiscal expenditure for the social security. From 2001 to 2013, China's social security expenditure per capita presented the cyclical changes. In recent years, the differences between the four major regions of the east, the middle, the west, and the northeast are the main reason for the differences in the financial expenditure for China's social security, and especially the difference in the eastern part is significant. In view of the above regional differences, with the use of the pedigree clustering method, according to the similarities of the social security financial capacities, we can divide various regions in China into four types. According to this classification, we should further improve the social security subsidy system. While increasing the social security fiscal expenditure, at the same time, we should develop the regional economy, balance the regional fiscal capacities, and achieve the balanced development of the national social security. After 30 years of the reform and opening up and the rapid growth, China's GDP per capita in the period of the "Eleventh Five-year Plan" reached $3300, and officially entered the ranks of the world's middle-income countries. How to maintain the sustained and healthy development of the economy and promote the social equity and build a harmonious society is an important task for China in the period of the "Twelfth Five-year Plan", and even for a longer period of time in the future. The construction of the social security system is the main way to achieve this goal. As an important mechanism of the social stability, the social security can not only maintain the basic life of the social members, but also has the important roles in promoting the social justice and restraining the gap between the rich and the poor.