Research On The Impact Of The Interaction Of Fiscal Support And Financial Support On Farmers' Income

Since entering into 21 century, No.1 document issued by the state council is concerned with the Three Issues "agriculture-rural areas-farmers", for eight years straight, which fully explains the importance of the problem relating to farmers. China is a vast country with varied social and economic development levels in different regions. It is facing the problem of huge gaps of income between urban and rural areas. Farmers' income improvement depends on the development of rural economy. The development of the rural economy cannot sustain without funds. Most of these funds come from fiscal support and financial market.In this paper, we study the interaction between fiscal support and financial support for agriculture, which is of both theoretical and realistic significance. In previous literatures, most studies on the fiscal support and financial support are separated, which leads to misleading conclusions that financial support on agriculture cannot increase their income or that fiscal support is important for agriculture development but lacks efficiency.This paper studies the case of Hangzhou, by way of quantitative analysis and qualitative analysis as well as the combination of theory and empirical studies. First of all, this paper studies the current development of fiscal support and financial support on agriculture and the existing problems. Next, based on empirical analysis, this paper comes to the conclusion that fiscal support and financial support should be interactive to increase farmers' income. Finally, three proposals are put forwards. The first is to optimize a platform, i.e. optimize supporting projects platform. The second is to carry forward two principles. Fiscal support should be the leading and fundamental support and financial support should be the main and key force. The third is to be interactive in three aspects, i.e. interactive between fiscal support and political financial support, between fiscal support and cooperative financial support as well as between fiscal support and commercial financial support.