Research on the Structure of Public Fiscal Expenditure Based on the Cluster Analysis Methods

The paper extracts the principal component of China’s expenditure per capita of local government based on the factor and cluster analysis method, to determine the structure of fiscal expenditure by category of basic services, senior services, economics, resource protection factor, etc. Then the paper analyzes the regional differences in the distribution of fiscal expenditure structure based on the systematic cluster analysis method. The conclusion is that Beijing, Tianjin and Shanghai are the advanced service category of expenditure growth pole, which drives around cities’ technology as well as education spending, and promotes regional economic growth.