The Performance Of Financial Expenditure For Supporting Agriculture In Jiangsu Province

As one of the economically developed provinces in China, the province of JiangSu is one of the main areas of food production as well. Three decades has past since reform and opening, especially the overall agricultural production capacity has been increased significantly. The income level of farmers has been improved constantly. How is the performance of fiscal expenditure in agriculture.In this paper, on the basis of learning the relevant theory and research of performance of fiscal expenditure in agriculture at home and abroad, the scope and imporant parts of this article have been defined clearly. The clear goals of performance management of financial expenditure is to achieve efficiency and equity. Mainly from theoretical and empirical analysis these two directions to proceed. At first, through theoretical analysising on the status of the fiscal ariculture expenditure since 1994, when the tax separating reform began, we learn that there are many factors to affect the performance in the fiscal agriculture support system,such as the scale agriculture, capital efficiency, management system, monitoring funds rate and the supervision level. Empirical analysis mainly from the efficiency and equity performance goals.An empirical study of the efficiency level, mainly from the equity and efficiency these two performance goal to furth our research. Using the extended Cobb - Douglas production function, Unit root test model and Cointegration model to research the relationship between the financial support of agriculture and the agriculture economic growth, the results shows that financial support did not play the desired effect in the agriculture economic growth as what we expected. The government of JiangSu province should focus on increasing agricultural large-scale investments in equipment and infrastructure, guide and collective farmers to increase investment in agriculture actively. Using Granger causality test, stepwise regression, Brown - Jackson extended mode to research the measured relationgship between the financial expenditure and the income of farmers. Result tells that the fiscal spending and agriculture loans both have played a catalytic role in farmers'income improvent, but there are still some more room and potential of further its role. The performance of fianance agriculture spending needs to be further improved. It also provides an empirical basis for multi-channel financial support for agriculture.An empirical study of the equity level, mainly introduce the variable of urban-rural income ratio.Through researching the relationship between the new variable and fiscal expenditure for supporting agriculture, we learn that fiscal expenditure in narrowing the income gap between urban and rural areas was not obvious. Fiscal expenditure can account for the increasement of farmers'income, but has little action in narrowing the income gap between urban and rural residents.Based on the theoretical and empirical research, This article also submits more scientific policy recommendations to improve the performance of fiscal expenditure in supporting agriculture. The first one is accelerating the establishment of the steady growth of the financial mechanism of expenditure.The second one is adjusting the expenditure structure and focusing on the important items. The third one is improving the efficiency of expenditure. The last one is strengthening the supervision of agriculture expenditure.