Rural Public Spending In China During The Period Of Transition Adjustment Research

The Central Economic Work Conference held at the end of 2004 clearly stated:China has come to the stage of industry promoting agriculture, the urban guiding the rural development. Later, the state has issued the "three rural issues",that is issues concerning agriculture, countryside and farmers, as the theme of the first official (No.1) document for eight sucessessive years, emphasizing the "top priority" status of the "three rural issues " in China’s socialist modernization period. And the construction of new countryside has been regarded as a major economic and social development goal of China 12th FIVE Year Plan. Meanwhile, the state has adopted a series of measures to address the "three rural issues". Despite this, there still exist difficulties in increasing farmers’income, the widening gap between urban and rural areas, food supply instability, environmental degradation and other issues in China’s rural areas. The task of constructing a new socialist rural areas and a moderately prosperous rural society is still very arduous. The public expenditure on rural economic and social development plays an irreplaceable role in rural areas. In this context, there are important theoretical and practical significances in studying the public expenditure adjustment in rural areas.In recent years, the total public expenditure in rural areas has increased annually and the expenditure structure has also been improved, but there is still an evident gap between the rural development requirements. There are still the problems of the inadequate total public expenditure and the imbalances of expenditure structure in rural areas. Public expenditure in rural areas can not satisfy the rural economy and the social development. The size and structure of the supply of public goods in rural areas can not meet the needs of farmers and the demands of building a new socialist countryside.In this dissertation, the public expenditure of the central government in rural areas is taken as the main study object. It studies from point of view how the rural public expenditure can promote rural economic development and the construction of socialist new rural areas. After the analysis of the relationship between public expenditure in rural areas and the supply of public goods and rural economic development, according to the features of China’s current total public expenditure and it structure in rural areas, it puts forward the thought of rural public expenditure adjustment. It also gives ways and methods for adjustments from the three areas, that is, the total public expenditure adjustment, structural adjustment and financial system reform in rural areas.This dissertation studies the following issues:first, public finance theory, the theory of public goods supply, the general theory of the impact of public expenditure on public goods and economic development, and the rural public expenditure situation and its existing problems in China’s transition period; second, the impact of public expenditure on the rural economy and the public goods supply in rural areas; third, ways and means of rural public expenditure adjustment; Last, the institutional innovation of rural public expenditure adjustment.This dissertation is divided into the following four parts:first, from the reality of our country, in the context of the new socialist countryside construction and building a moderately prosperous society, it presents the importance and necessity of studying the public expenditure in rural areas. Second, it introduces the domestic and international public finance theory, public goods theory, public finance and economic development theory and the general theory of public goods supply and public expenditure in rural areas. It also analyzes the impact of rural public goods supply on rural economic development. On this basis, it further analyzes the impact of the total public expenditure in rural areas and its structure on the rural economy and rural public goods supply. Third, it analyzes the basic trend of China’s rural public expenditure and public goods supply in the transition period, and it analyzes the basic situation and problems of the current rural public expenditure and public goods supply from viewpoint of size and structure respectively. Based on this, it presents the thought of rural public expenditure adjustments. Fourth, it studies how to adjust public expenditure from the viewpoints of the rural public expenditure size adjustment, the rural public expenditure stucture and the rural public expenditure institutional innovation respectively, and it presents ways and means for the adjustment accordingly.