A Research On Policy To Narrow The Income Gap Between Urban And Rural Residents

Along with the socialist market economy system reform and economic transition process mechanism, perfecting our economic rapid development, but the income gap of residents but there was growing trend. The income gap between urban and rural residents not only directly related to expand the people’s living standards, and affect social stability and economic nice development, China’s reform and development constraints become the obstacle. So, should be highly increase farmers’ income, narrowing the knowledge of income gap between urban and rural residents, the importance and urgency of increasing farmers’ income, narrowing the income gap between urban and rural residents as national economic and social development of the important questions to see.This article from the basic situation of the income gap between urban and rural areas in China, the author analyzes the deep reason appear this kind of circumstance, in analyzing the income gap between urban and rural areas based on the cause of investment in agriculture and countryside from the transfer payments to reduce the farmer’s efforts, to realize the tax burden equal public services, perfect countryside social security system, and establish a balanced the household registration system and employment system is proposed as narrowing the income gap financial policy and supporting measures.The thesis contains five chapters;Chapter one elaborates the background and research significance of the topic, the current study situation of the research at home and abroad, the content and methods used in this study, as well as the limitations of it.Chapter two is dedicated to describe the current situation and the reason of income gap between urban and rural residents in china. Through the indicators analysis from the absolute disparity between the income of urban and rural residents, the income contrast of the urban and rural residents, the Gini coefficient, the Engel’s coefficient, the thesis concludes that China’s urban-rural income gap is too large and the trend continues to expand. Secondly, analyzes the main reasons for the gap of the urban and rural residents’ income which involve the Urban-rural dual economic structure, the unreasonable fiscal spending and the excessive burden on farmers, the lagging education level of rural residents, the serious shortage of medical resources in country, the inadequate financial support in rural areas, and the imperfect township agency administrative system.Chapter three is an analysis of the fiscal policy to narrow the income gap between urban and rural residents. The thesis first introduces the current fiscal policies to narrow the urban-rural income gap, then briefly expounds the effectiveness of the current fiscal policies, and finally pointed out the inadequacies of the existing fiscal policies including the following areas:the imperfect agricultural subsidies, the insufficient funds in township authorities from the tax reform, the lack of higher education resources in rural areas, the loopholes of the countryside subsidy policy to the home appliances, the imperfect supply of public goods for the rural areas.Chapter four provides the empirical analysis of the factors affecting the income gap between urban and rural residents. The writer selects variables to establish a model, then estimates and analysis the variables through the model to get the variables which significantly narrows the income gap between urban and rural areas.Chapter five displays the fiscal policy recommendations and supporting measures to narrow the income gap between the urban and rural residents in China, proposes to improve financial support for agriculture and rural, increases input for rural education, strengthens the construction of rural public health, reduces peasants’ burden by the use of tax policy, establishes the ball ant urban and rural household registration system and employment system, improve the national agricultural investment in the legal system, and increase financial support for rural area, reform township agency administrative system, improve the rural land system, promote the construction of new urbanization so as to improve the rate of the urbanization,promote science and technology in agriculture in order to large the scale of production.