On the Relevance of Chinese Public Finance Expenditure and Income Inequality

More and more people accept the concept of 'public finance', which means either a new financial administration system or a new finance expenditure idea. Comparing with old finance expenditure system which is characteristic as limited object, limited extension, 'public finance' does extend the coverage of finance and make finance more public. But the question is whether the notion of 'public finance' can dovetail into the existing finance system or not, and which index can reflect the 'public finance'. If Chinese existing finance can fully be characteristic as pubic finance, the financial function, redistribution, can reduce the income inequality. Through the empirical analysis between the relevance of finance expenditure and the degree of income distribution equality, it reflects that Chinese existing public finance expenditure can not efficiently reduce the income distribution gap. For China, public finance is merely a good idea, there is still a long distance for fulfill of 'public finance'.