Abstract: The State-owned Capital Operating Budget, because of its small income and main usage for economic construction, leads to the non-resident biochemical tendencies of expenditure structure. But whether from the realistic perspective or theoretical perspective, increasing the people's livelihood expenditures of State-owned Capital Operating Budget at this stage can not only alleviate the social problems caused by the aging of the population, and by the state-owned capital income sharing, can help the construction of "service oriented government" in a better way. Through the analysis of scale and development level, this paper holds that although the livelihood public expenditure level of State-owned Capital Operating Budget has developed rapidly, the overall size is small, so it still has a great potential for development, and we can further increase the intensity of its livelihood spending. And the recent introduction of the "Social Security Fund Regulations" lays down that the social security fund is one of the sources of state-owned capital allocation, which provides an opportunity for the increasing of State-owned Capital Operating Budget livelihood expenditure.

Key words: state-owned capital, operating budget expenditure, livelihood orientation, social security fund