The Research Of The Scale Efficiency On Finacial Support In Agriculture In Shandong Province

Shandong is one of the provinces famous for its farming production. The fiscal expendituresupporting agriculture occupies an important place in the development of agriculture.Combined with the international, domestic environment and the current development situationof Shandong, my research on the financial expenditure efficiency could largely improve thefiscal expenditure efficiency and promote the agricultural development. The theory ofAgricultural product supply and demand, the theory of the public products, the theory ofindustrial development, the theory of government intervention and the theory of the interestgroup are the theoretical basis of financial arrangements on expenditure.Since the reforming opening, the fiscal expenditure in Shandong increases steadily with thefinancial strength growing and the emphasis on agricultural development by the government.From1978to2010the budget of supporting agriculture expenditure increased from402,000,000yuan to212,450,000,00yuan, increased by52.85times. The total expenditureincrease to143821000000yuan, accounted for7.26%of the total fiscal expenditure. The rateaverage annual growth reaches14.12%. However, it is worthwhile to note that the rate ofgrowth in agricultural financial support is far smaller than the rate of fiscal revenue. Theproportion of financial expenditure on supporting agriculture relatively is small and decreasedgradually. This reflects the local financial support strength on agriculture is not enough andthe average value of it is only8.4%of the total financial expenditure, which is far lower thanthe level of foreign investment in agriculture. It can be divided into four stages from thefinancial expenditure on supporting agricultural: The zero-growth stage phase between1978and1985after the reform and opening up, the rapid growth stage from1986to1997, theslow-growth phase between1998and2003and the rapid growth period between2004and2010.As the econometric analysis result shows the marginal output values of the agriculture fiscalexpenditure during the year2000-2010are significantly higher than the non-agricultural expenditure marginal output. It means that the government should increase the investment offinance supporting agriculture scale from the increment of funds allocation perspective, whichis important for increasing of total output. The econometric analysis result of input-output indifference measurement indicates that the efficiency of fiscal expenditure enjoys an increasingtrend during the10years period. But there is still room for improvement. Shandong provincepublic finance expenditure efficiency did not reach the ideal situation and the scale of fiscalexpenditure on supporting agriculture was still small. The reason can be attributed to threereasons. Firstly, the financial system is uneven, which caused local finance capital shortage.Secondly, the lack of organization and political discourse power of farmers contributed to this.Thirdly, the system of ensuring agricultural guarantee investment of the modern agriculturehas not completed. Therefore, the government should improve the fiscal expenditureefficiency and expand the expenditure scale. At the same time, we should optimize thestructure of financial expenditure system and improve local financial resource. The farmerorganization should be built to strengthen their political discourse right. Government shouldincrease the support of agriculture, establish and promote the development of modernagriculture investment insuring system.