Research On The Effect Of Local Fiscal Expenditure For Supporting Agricultural Production

As an important part of fiscal policy,fiscal policy of supporting agriculture should be reasonably implemented and carried out.It not only has a very strong theoretical value,but also important practical significance to improve the government's fiscal policy of supporting agriculture and solve the "three rural issues" as soon as possible.As one of the developed provinces in the east,Jiangsu is also a major grain producing area and agricultural province in China.The prosperity and stability of rural economy in Jiangsu is not only important for the development of regional economy,but also the stability of national economy and food safety.Southern,Central and Northern Jiangsu has the obvious similar characteristic with the Eastern,Central and Western China,so there are many the same problems in the fiscal policy between Jiangsu Province and the country,which need targeted research in theory.State financial support to the "three rural issues" has different classification in different periods.After a financial classification reform in 2007,the data caliber and content of fiscal expenditure for supporting agriculture have occurred great changes,with no comparability and continuity before and after.Theoretically,the government's fiscal expenditure on agriculture will affect all aspects of agricultural production,and can optimize the allocation of total amount,structure and region.There are many related research papers in academia at present,but because of data constraints it is lack of detailed analysis of the latest changes in the supporting policy.Based on the above background,this paper takes the fiscal expenditure for supporting agriculture in Jiangsu Province as research object,plans to obtain original data from the government finance departments,makes an empirical analysis of its role in promoting the growth of agricultural production,and provides suggestions for the government to formulate financial policy to agriculture and better use financial resources.The main contents and results of this study are as follows:Firstly,this paper makes a deep analysis of fiscal expenditure for supporting agriculture from the perspective of economics.As an important foundation of the national economy,agriculture is facing the impact of natural risk and market risk at the same time.With the positive externality and public product characteristics,agriculture is aslo at a disadvantageous position in the allocation of social resources.Therefore,agriculture is in need of financial support vigorously.The theory evidence of fiscal expenditure for supporting agriculture to promote agricultural economic growth is is that the fiscal expenditure can promote economic growth,and the specific theoretical framework of the allocation of total amount,structure and region can be built according to the theory of endogenous growth.Based on the deep analysis of items mechanism of fiscal expenditure for supporting agriculture,this paper summarizes the successful experiences and lessons of the financial support for agriculture in various countries.The second part of the paper is the analysis of the scale allocation of fiscal expenditure for supporting agriculture in Jiangsu Province.In recent years,the financial policy for supporting agriculture in Jiangsu has made a series of progress,but from the aspect of the breadth and depth of agricultural support,there is still a big gap between the investment scale and the actual needs of rural areas.Based on constructing the theoretical model,it is found that when the financial support for agriculture is scale optimal,the marginal output is 1.Now the marginal output of fiscal expenditure for supporting agriculture in Jiangsu Province is still higher than 1,so the efficiency of allocation in supporting agriculture needs to be improved.In the future,it is necessary to further increase the proportion of the investment in agriculture to the total agricultural output value,and strive to achieve the best standard above 40%.The third part is the analysis of the structure allocation of fiscal expenditure for supporting agriculture in Jiangsu Province.In order to effectively promote the growth of agricultural economy,different types of agricultural expenditure must be compatible with their own output elasticity,and in practice,we only need to focus on the agricultural supporting items with significant positive impact.In the empirical analysis it is found that the fiscal expenditure for supporting agriculture in Jiangsu Province has a obvious promotion and leading role to agriculture cropping economic growth,of which agricultural subsidies and agricultural cooperative operation have the most significant positive impact,the farmland construction protection and agricultural technology extension relatively weak,and the comprehensive agricultural development with no obvious role in promoting.Finally,it makes the further analysis of the key agricultural supporting items.The paper comes to the conclusion that the effect of agricultural subsidies is generally good,and in the future there should be key attention to the advantaged subsidy items such as agricultural means of production and technical subsidies,agricultural production insurance subsidies,and take proper care of the weak subsidy items such as direct subsidies to grain farmers,general subsidies for agricultural production supplies.Government financial support for the development of cooperatives also has very obvious positive impact on crop production otherwise,but due to the limiting size of supporting funds,the elastic coefficient is still relatively small,without full play to its potential effect,and still needs to pay more attention in the future.The fourth part is the analysis of the regional allocation of fiscal expenditure for supporting agriculture in Jiangsu Province.The policy of financial support for agriculture in the Middle and Northern Jiangsu has made great progress,but it is still weak in the intensity and depth of agricultural support compared to the South,presenting the basic pattern of "South High North Low".According to the results of the imbalance index of financial support for agriculture,the weighted dispersion coefficient of per capita financial support for agriculture,and the Theil index,the current regional gap of region financial support for agriculture in Jiangsu Province is narrowing.The fiscal expenditure for supporting agriculture in Jiangsu Province can be referred to the "adaptive efficiency"standards in institutional economics for policy model selection.More and more care and support should be further strengthened to the central and northern areas at the provincial financial level,and according to the demand for funds and the allocation mechanism,each region should conduct the optimized configuration at the same time and actively increase investment in the items which have more significant positive impact of the five types of agricultural expenditure with overall balance.The last part is the study on the performance evaluation and technical efficiency of fiscal expenditure for supporting agriculture.At present,there are still some problems in the management and application of fiscal funds for supporting agriculture in Jiangsu Province,and the comprehensive use of subjective Analytic Hierarchy Process and objective Data Envelopment Analysis can obtain the accurate judgment.The results of AHP model show that the performance level of fiscal expenditure for supporting agriculture in Jiangsu Province is not high,and there are still some room for improvement and optimization.The performance of each city and region differs,reflecting their local characteristics and policy differences.From the overall situation,the Middle and Northern Jiangsu is relatively ahead of Southern Jiangsu.The results of DEA model show that there are both structural misconduct and scale imbalance in the fiscal expenditure for supporting agriculture in Jiangsu Province,mainly because the scale efficiency does not match the pure technical efficiency,which results in a low technical efficiency.In the future,the structural adjustments should be carried out according to the relaxation variables obtained by projection analysis,and scale adjustments also should be done according to the stage of scale compensation.According to the above conclusions,corresponding policy recommendations are proposed:attache great importance to the scale configuration,and actively increase the fiscal investment scale for agriculture with more policy support to the Middle and Northern Jiangsu;based on scientific optimization of the structure allocation,actively promote the policy reform of agricultural production subsidies,and make great efforts to improve the quality and level of specialized farmers cooperatives;strengthen the regional optimal allocation of fiscal expenditure for supporting agriculture,and choose scientific and flexible mode of operation with the local actual conditions;intensify the supervision management and scientific application system of fiscal expenditure for supporting agriculture,and strive to improve the efficiency in the use of financial funds for agriculture.