Research On Financial Agricultural Policy

Agriculture is the foundation of national economy, and it has a great effect on the rate of GDP growth. Its positive externality and natural weak quality decide that the government should make a large investment in it, in order to make up for the market failure caused in the process of allocation of agriculture resources. At present, we are striving for the breakthrough of the dual economic structure and the development of agriculture will affect the industrialization, so the government must attach great importance to agriculture.Since the reform and opening up, fiscal policy has being promoting agriculture development. We divide this period into three stages including the initial stage and the medium stage and the new era stage. In the process, the government gradually diverts attention to the breakthrough of dual economic structure, and it depends on public finance and legalization more and more, and the legalization of fiscal policy is forming.Despite the fiscal policy has promote the development of agriculture, it still has some problem to solve. Firstly, the expenditure in agriculture has a poor performance, due to the small-scale, irrational structural, unreasonable pattern, poor funds management and effective appraisal. Secondly, fiscal policy has not provided enough support in the innovation of agricultural institution. There are not many policies which support in broadening the financing channels, promoting scale land management and encouraging the innovation of agriculture system.By the contrast to the western developed countries and through the empirical analysis, we suggest that the government should adjust the fiscal policy. Firstly, the government should improve the performance of agricultural expenditure. The government should increase the scale of expenditure, through exploring new ways in attracting social capital. The government should improve the expenditure structure, through investing more in rural infrastructure, rural education and agricultural technology. The government should improve the expenditure pattern, through legalization of fiscal policy and exploring allocating funds to the rural collective or rural leading enterprises. The government should strengthen the management of agricultural funds, through establishing information disclosure system and unified capital account. The government should establish performance appraisal system, through defining reasonable appraisal index and content. Secondly, the government should take more attention in supporting the innovation of agricultural institution. The government should support in broadening the financing channels, promoting scale land management and encouraging the innovation of agriculture system.