Research On Financial Expenditure Way Of Rural Infrastructure

Rural infrastructure is important to our development, such as increasing farmers' incomes, developing the rural markets, expanding domestic demands, accelerating the rural well construction and promoting our national economy with a sustained, rapid and healthy way. The construction of rural infrastructure can not do without the support of financial resources. Scientific and reasonable financial expenditure way can not only improve the effectiveness of expenditure, and can guide the establishment of multiple input mechanisms effectively. Only in this way can we form a long-term mechanism of rural infrastructure investment and financing. Since 2003, the government has increased the inputs to agriculture, so that the situation of rural infrastructure has been markedly improved. However, backward financial expenditure way is now not only limite the guiding role of financial capital,but impede social capital into the rural infrastructure field. The backward financial expenditure way is particularly presented in the following areas: applications of paid and indirect financial expenditure way are narrow; financial expenditure way are low-level; standards of financial expenditure way are different. All these reduce the effect of fisical expenditure, and also at the same time waste the capital. So, under the backgrounds of industry financing agriculture, developing modern agriculture, building a new socialist countryside and increasing farmers incomes to stimulate domestic demands effectively, it is an urgent need that we should reform and innovate financial expenditure way of rural infrastructure in order to improve the efficiency of fisical capital, and should guide the establishment of multiple input mechanisms.This paper has three research objectives: Firstly, we perfect the concept, classification, and choice of financial expenditure way; Secondly, we do an empirical analysis to the characteristics and shortcomings of financial expenditure way of rural infrastructure; Thirdly, we give some suggestions to reform and perfect our policy. To this end, there're three parts of eight chapters in this paper. The first part consists of Chaptersâ… ,â…¡andâ…¢. In this part, we first propose the concept and classification to the fianancial expenditure way of rural infrasturcture, and on this basis we analyze the chioce of this way theoretically. Through the description to the historical evolution path, we try to analyze the historical factors that affect the changes of this way. The second part consists of Chapterâ…£and Chapterâ…¤. In this part, we first analyze the channel of the financial expenditure way, and on this basis we take the Comprehensive Agricultural Development for exmple to appraise the efficiency of fisical expenditure, then generalize features, problems and reasons. Finally, we take rural household biogas construction in JX, and water supply facilities in XT in Shandong province for case study to analyze their financial expenditure way. The main contents of Chapter VI toâ…§are the third part of this paper. In this part, we first summarize useful experiences abroad, and then propose some measures and institutional arrangements to reform and improve the financial expenditure way. Finally, the paper summarizes the conclusions and some questions to be further researched. Main conclusions of this paper are:(1) The whole financial expenditure way mainly applies to the rural infrastructure with pure public attributes. Part financial expenditure way is mainly suitable for mixing public goods. The applicable scope of free financial expenditure way include the following areas: Firstly, some rural infrastructures with pure public attributes and must be provided by governments, Secondly, some rural infrastructures with quasi-public attributes and positive externality but cannot be recovered costs by charging mechanism which also must be provided by the governments. Paid financial expenditure way is mainly used for the mixed rural infrastructures with charging mechanism, and can be provided effectively by markets, which include "club" facilities and the public infrastructure to private products. The direct financial expenditure way is mainly applied to those marketing way have no efficiency; Indirect financial expenditure way is applied to those areas that market can allocate resources effectively.(2) In the current, the characteristics of financial expenditure way of rural infrastructure include: One, the whole financial expenditure way combines with part; Two, the main financial investment combines with complementary; Three, fiscal expenditure combines with real spending; Four, fiscal funds guide capital into rural infrastructure combines with other elements; Five, the expenditure spending advanced combine with behind. Reasonable choice between the whole financial expenditure way and part, especially the innovative application of part way improved the efficiency of financial expenditure effectively.(3) Summerize the deficiencies of rural infrastructure financial expenditure, we can conclude that: in the first place, the application scope of indirect and paid way is narrow; in the second place, financial expenditure way is at a low level, and further innovation for it is deficient. Third one, financial expenditure way are lack of consistency which is based on the attributes of products. There are many reasons for the above questions. On the one hand, financial expenditure management system cannot adapt to the development of market economy better because of the lagged effect of government functions transformation; On the other hand, imperfect market mechanism, difficult financing, and immature investment subjects of rural infrastructure also result to this.(4) Analysis to the financial expenditure of rural domestic biogas facilities in JX of Shandong province indicates that financial subsidy funds to rural domestic biogas facilities play an improving role significantly, but excessive support may lower the expenditure efficiency on the contrary; Analysis to the financial expenditure of rural water facilities in XT of Shandong province indicates that financial expenditure play an important role to reduce the installation costs and to improve farmers' enthusiasm, but there're also some restricts to the market capital into rural infrastructure. So, we should take the indirect and paid financial expenditure way at the right moment. to the above infrastructures.(5) To perfect financial expenditure way of rural infrastructure we should target at improving the efficiency of fiscal expenditure that based on a fair way, choice the financial expenditure based on the product attributes, and meantime do according to the fact and advancing in proper sequence. Specifically, we should insist direct and free way to the infrastructures with pure public attributes, promote innovation of the infrastructures with mixed public attributes according to the actual conditions in a right time, and take indirect and paid way to instead part and free way; promote innovation of financial expenditure itself and its application according to the specific operating conditions. In order to promote the reform process above, we should formulate relevant systems such as accelerating the legislative process, transforming the government functions, reforming the management system of fiscal expenditure, perfecting the market mechanism and rural financial system, strengthening the degree of farmers' organization, and so on.