An SVAR Analysis On The Relation Between Different Kinds Of Fiscal Agriculture Expenditure And The Increase Of Peasants’ Income

On the basis of data about financial support for agriculture from1978to2010, this article analyses the present situation of financial support for agriculture. Based on SVAR model, it also analyses dynamic correlation between fiscal agriculture expenditure and the increase of peasants’ income, with the methods of generalized impulse response functions and variance decomposition. The study shows that different constituent parts of fiscal agriculture expenditure have significant differences in contribution degree and influence degree in promoting the famers’ income, and sometimes there even exists time-lag action. For example, the average proportion of expenditure for supporting agricultural production is66.7%, but its contribution degree on promoting famers’ income is12.3%; the average proportion of expenditures for trial manufacture of new products, related experimentation, and subsidies for key scientific research projects is0.9%, but its contribution degree reaches20.6%. At last, it suggests that the government should strengthen supervision on the expenditure for supporting agricultural production and perfect correlative mechanism to promote its capital usage efficiently. Moreover, the government should adjust the structure of fiscal agriculture expenditure as soon as possible, by decreasing the expenditure for supporting agricultural production and increasing the expenditures for trial manufacture of new products, related experimentation, and subsidies for key scientific research projects.