Constructive expenditure generally refers to the expenditure of the state or government for economic construction, especially for infrastructure construction. At the beginning of the reform, China put forward the slogan "First, we should eat, second, we should build".
It means that finance has changed from the original "construction finance" to "meal finance" first, and it will only be used for "construction" if there is spare capacity. "Dining finance" is generally a popular expression of fiscal consumption expenditure, while "building finance" is a popular expression of fiscal constructive expenditure.
Related content explanation
I. Constructive expenditure
In the period of planned economy, finance unilaterally suppressed consumer expenditure as much as possible and excessively increased constructive expenditure, resulting in a serious shortage of various consumer expenditures and excessive people's living debts. At the beginning of reform and opening up, this situation seriously affected the normal development of the economy.
At this time, it is of great significance to meet the demand of "eating" first for economic reform and development. The repayment of consumer debt makes the proportion relationship that was seriously unbalanced tend to be coordinated. After the reform and opening up, China's economy has been developing for 20 years in a row, and the consumption demand has contributed greatly.
Second, other constructive expenditures.
Consumption expenditure has always been the most basic and main expenditure content of public finance. Under the market economy, most of the so-called "constructive" expenditures can only be borne by enterprises and individuals through the market.
The reform has led to a substantial reduction in constructive expenditure and a large-scale "withdrawal from the production field", which is a direct manifestation of the financial withdrawal from the competitive field in an all-round way, and is therefore one of the inevitable results of the economic market-oriented reform. As a direct result of this change, financial activities began to shrink to the field of market failure, which is one of the typical manifestations of public finance.