Study On The Effect Of Finance Expenditure Supporting Agriculture On Peasants' Income

The question of peasants'income relates rural reform, development and stability. The core of the problem of the peasant, the rural and the agriculture is to increase the peasants'income. Enhancement of growth rate of the peasants'income, the disparity of city and rural inhabitant income reducing, directly relate our country industrialization advancement, relate the national economy continually, Fast, healthy development.It is can be observed that the peasants'income has increased by looking back at the rural economy developing since the reform and opening. But it is lower than that of the city inhabitant. At the same time, the proportion of agricultural finance expenditure has being reduced, though the number of expenditure has being increased. It is can be included that the finance expenditure supporting agriculture can make great progress on the peasants'income by studying the function mechanism of the finance expenditure.Basing on the theory of public products and the statistics on finance expenditure supporting agriculture, the paper gives such finance expenditure structure: expenditure for supporting agriculture production, expenditure for agricultural capital construction, science & technology promotion funds, rural relief funds. This paper reveals agricultural support and protection theory, analyzes the current situation and the existed problems of finance expenditure supporting agriculture. After reasonable analyzing, the paper obtains through the Granger causality test, the finance expenditure supporting agriculture is the Granger reason which the peasants'income grows, thus further studies the relations between the structure of finance expenditure and the peasants'income growth. Through analyze the situation of finance expenditure and peasants'income, some strategies and suggestions are proposed in order to solve the problems of the peasants'income in China.