Research On Financial Expenditure On Agriculture Of China

Since the reform and the open, our country government has attached importance to agricultural development and increased fiscal agricultural expenditure year after year. But, the phenomena that the foundation of agriculture being weak and the rural areas being backward and the peasants being poor are widespread in our country, the three-dimensional rural problems have constrained the development of economy and society. Entering into the 21st century, our country entered into the period of finance supporting agriculture, industry back-feeding agriculture, urban and rural development planned as a whole. Therefore, it is stringent to study on problems of our country fiscal agricultural expenditure and to display function of fiscal supporting agriculture effectively and to impel agriculture developing. Using the theory of public finance, adopting qualitatively and quantitatively analysis methods, this paper studies on problems of our country financial expenditure on agriculture systematically, proposes the corresponding financial policies and measures aimed at solving existing problems. The main content of this paper is as followed:The first section:this paper explains the background and meaning of the issue, and then reviews the domestic and foreign scholars' research. Agriculture is not only the foundation of national economy but also a weak industry which has low comparative benefit, the government must support and protect agriculture, and the fiscal agricultural expenditure is an important method for government to support and protect agriculture. Using method of qualitative analysis, this paper expounds the theoretical bases of finance supporting agriculture and finance supporting agriculture policies evolving of a few developed countries and necessity our country finance supporting agriculture.The Second section:this paper evaluates the historical changes and current situation of our country finance supporting agriculture; adopting method of quantitative analysis, analyzes the performance in general and structure characteristic of supporting agriculture. Consequently, a conclusion was drawn as follows:the financial investment on agriculture is not enough and the budget structure for agriculture is not proportional.The Third section:the thesis employs research method of vector regression and the Granger cause test and the data envelopment analysis method, empirically examines the effects of our country finance agricultural expenditure on added value of agriculture increasing and farmer's income increasing from the reform and the open, calculates and empirically examines the efficiency of our country finance agricultural expenditure from the reform and the open; in terms of the size of finance agricultural expenditure, it can be concluded that finance agricultural expenditure has surely promoted the agricultural development and farmer's income, while there still exist some elements that discouraged its effects. Conclusion of empirically testing indicates, under certain expenditure size and composition and method, there are some factors which affect the effects and efficiency of finance agricultural expenditure.The Fourth section:this paper puts forward the system innovation promoting effect and efficiency of our country financial agricultural expenditure, puts forward the measure of strengthening and improving our country financial agricultural expenditure. Content of system innovation consist of: rural organization system innovation, rural land system innovation and fiscal system innovation. The measure of strengthening and improving our country financial agricultural expenditure consist of:increasing the proportion of fiscal agricultural expenditure through law-making, optimizing the structure of the expenditure and adjusting methods for agricultural subsidy.