A Study On The Relations Between Finance Expenditure Supporting Agriculture And Peasant's Income Growth

During the middle of last decade of 20th century, Chinese peasant's income have gone into a slow growth stage from the fast increase time after the Reform and Opening Up .As the largest consumer, their income state has effected their consuming expectation directly, and so the rural market can't be started up. This has greatly restricted the rural society and economic development and become the bottleneck of the whole economy. Peasant's income problem has become the most important of the all pursuits.Henan is a great agricultural province, and agriculture has vital effect on the whole national economy development. Finance has played an important role for supporting agricultural development. In the new stage to construct All-round Xiaokang Society, finance must enlarge agricultural expenditure and adjust the policy targets, not only to support agricultural production but all-round development of rural area, and turn to support peasant's income growth from the agricultural products growth. This study reviewed some related theories about the effect of government and market, market failure and public goods, tied with agriculture industry characteristics, then analysis the necessity for finance to support peasant's income growth and the present fiscal policy, and analysis the features of Henan peasant's income growth fluctuation and its causes and effects. The fourth part study the pattern of finance expenditure for agriculture and further study the problem and causes. The fifth part quantitatively analysis the contribution to peasant's income growth of the finance expenditure for agriculture by establishing recursive models and elasticity models. Based on all above researches the study brings forward the countermeasures of finance supporting agriculture in the new development stage.