According to the economic nature of fiscal expenditure, that is, whether fiscal expenditure can be directly compensated equally, fiscal expenditure can be divided into purchase expenditure and transfer expenditure.

Purchase expenditure, also known as consumable expenditure, refers to the expenditure of the government on purchasing the goods and services needed for the implementation of financial functions, including the expenditure on goods and services needed for the government's daily government activities and the expenditure on goods and services needed for government investment. Purchase expenditure basically reflects the share of social resources and factors directly allocated and consumed by the government.

Transfer expenditure refers to the government providing financial funds to residents, enterprises, institutions and other units free of charge. It refers to the expenditure that the government transfers some financial funds to residents and other beneficiaries free of charge in a certain way. Transfer expenditure is mainly composed of social security expenditure and financial subsidies, which reflects the government's non-market redistribution activities.

Extended data:

The role of fiscal expenditure

1. Expenditure on ensuring the normal operation of state machinery, safeguarding national security and consolidating the construction of government power at all levels, such as administration, national defense, diplomacy, public security, justice and supervision.

2. In order to maintain social stability and improve the quality of the whole nation, external social effects are huge social public expenditures, such as social security, science and technology, education, health, culture and poverty alleviation.

3, is conducive to the improvement of the economic environment and ecological environment, with huge external economic effects of public infrastructure construction expenditure, such as water conservancy, electricity, roads, bridges, environmental protection, ecology and other aspects of expenditure.

4. At present, China's economy is in a transitional period. Under the condition that the market mechanism is not perfect, the state should also have necessary control over the macroeconomic operation, and the finance should also reserve some financial resources and properly intervene in economic activities.

Baidu Encyclopedia-Financial Expenditure

Baidu Encyclopedia-Transfer Expenditure

Baidu Encyclopedia-Purchase Expenditure