Study Based On The "three Rural" Issue Of The Financial And Functional Perspective

The problem of agriculture, rural areas and farmers which means the underdevelopment of the agricultural sector, delay of rural areas' social progress and the lack of growth of the farmer's income is the biggest economic, social and political problem of contemporary China. It is important for China to overcome these problems as fast as possible, because it concerns the persistent and healthy development of the Chinese economy, relates to the achievement of the object of affluent society, and has direct influences on the ultimate interests of the Chinese people and China's permanent stability. During the last three years, China's central government consecutively issued NO.1 documents concerning farmers' income growth, agricultural development and rural areas construction , and put "the problem of agriculture, rural areas and farmers " into the center of all the jobs of the Party and the government. As a major means of macroeconomic management, fiscal policy plays an important role of maintaining economic development and social stability, and influences the economic situation directly. This paper argues that we should make a full use of the fiscal policies to solve China's problem of agriculture, rural areas and farmers.Based on the theories of finance and within the analytical framework of finance's role on the development of the economy and society, this paper analyzes problems of agricultural development, rural areas' development and farmers' income growth from the angle of finance's function of resource's allocation, economic growth, economic stability and income distribution. This paper summarizes the precedent research results, uses a large body of the empirical data, and analyzes various aspects concerning the problem of agriculture, rural areas and farmers, such as the policy of public goods' provision to the rural areas, the fiscal expenditure on agriculture and the subsidy policy of agriculture. Emphasized on the performance of the fiscal policy, this paper refers to the developed countries' useful experiences, and puts forth feasible policy advices fitting into Chinese actual situations to solve the problem of agriculture, rural areas and farmers.This paper argues that the problem of agriculture, rural areas and farmers are caused by a large amount of complex social, economic and political reasons. From the view of public finance, this paper has the following findings: First, the lack of finance's allocation function is the cause of the underdevelopment of the rural areas. The asymmetry between central and local government' expenditure burden and revenue resource, the non-equilibrium development pattern in agriculture, the lack of the effective express mechanism of rural areas' public goods demands are the main reasons for the insufficient effective provision of public goods for the rural areas.Second, the lack of finance's development function is the cause of the fragility of the agricultural sector. The insufficient aggregate fiscal expenditure on agriculture, unsoundness in agriculture expenditure structure and the spill over effects of fiscal money for agriculture delay the process of the development of the agricultural sector.Third, the lack of finance's distribution function is the cause of the poverty of farmers. Irrational distribution between cityl and rural sectors, non-standard managerial system, large burden in education and Medicare neutralize the vigor of farmers' income growth.From the perspective of financial policy, the results of the paper are as follows: firstly, building a normative public goods provision mechanism, planning the provision of the city's and rural areas' public goods as a whole, improving the division between expenditure burden and revenue income as well as government transfer payment are useful in solving the social development problems of the China's rural areas. secondly, a effective mechanism of finance policy in sustaining and protecting agriculture, increasing government expenditures, strengthening subsidies are helpful for solving agricultural economic development problems;thirdly, Building a dynamic income redistribution mechanism, reinforcing the tax and charge reforms of China's rural areas, increasing government expenditures on social security, building a new type of rural areas' social security and Medicare system will help increase the income of China's farmers.