Comparison of Investment Direction and Efficiency Analysis of China’s Rural Poverty Alleviation Fund

2020 is the year of decisive victory in poverty alleviation. How to allocate poverty alleviation funds scientifically is the key to whether we can win this battle against poverty. This paper analyzes the input-output efficiency of China’s rural poverty alleviation funds by constructing a principal component estimation model, and draws the following conclusions: Generally speaking, the output efficiency of national poverty alleviation funds is increasing year by year, but it has achieved poverty alleviation in infrastructure services such as personal clothing, food, housing and transportation. The marginal effect is getting weaker and weaker. The proportion of funds invested in health poverty alleviation and education poverty alleviation is relatively large, and the poverty alleviation effect achieved is relatively significant. Finally, relevant countermeasures and suggestions are put forward for the direction of poverty alleviation funds.