The Effect Of The Structure Of The Financial Expenditure For Agriculture On Increase Of The Peasants’ Income

Since the end of1970s, economic structure of China has made remarkable achievements, comprehensive national strength has significantly enhanced, residents’ income has been increasing rapidly and people’s living standard has basically reached the well-off level,however,the phenomena of weak agricultural foundation status, rural backwardness,and relatively slow increase in peasants’ income have existed widespread in China and constraints of rural issues on the economic and social development has bee increasingly prominent.For Henan province, peasants’ per capita net income is not only lower than the national average,but also its growth rate lags behind that of overall economy of Henan province.The financial expenditure for agriculture may give impetus to agricultural growth, increase in peasants’ income and rural development,but in the current period, under the conditions of difficulty of rapid growth of the scale of the financial expenditure for agriculture,how to allocate the funds of the financial expenditure for agriculture,to optimize the structure of the financial expenditure for agriculture and to give impetus to agricultural growth to a maximum degree seems more urgent and necessary.By analyzing the conditions of the structure of the financial expenditure for agriculture and peasants’ per capita net income in Henan province from reform and opening-up,we can generalize the features of the structure of the financial expenditure for agriculture, which show that the supporting agricultural production and agricultural operating expenses is too much and its share is too large, the expenditure for capital construction is less than normal and its share is low, agricultural science&technology promotion funds are too little and their shares are too small,and rural social almsgiving increase signicantly and its share rise rapidly.Peasants’ income in Henan grows rapidly,has a stage feature,but is lower than the national average and it’s growth rate falls behind the of overall economy of Henan province.We studied the effect of the four subjects of the financial expenditure for agriculture on increase in peasants’ income with cointegration model. The empirical analyses show that the long-term cointegration exists among supporting agricultural production and agricultural operating expenses, expenditure for capital construction,agricultural science&technology promotion funds, rural social almsgiving and peasants’ income,and both the supporting agricultural production and agricultural operating expenses,and the expenditure for capital construction significantly go against the increase in peasants’ income,and both agricultural science&technology promotion funds and rural social almsgiving significantly increase the peasants’ income,but on the whole, the financial expenditure for agriculture go against the increase in peasants’ income. We calculated the efficiency scores of the promotion in peasants’ income of the four subjects of the financial expenditure for agriculture with data envelopment analysis.The results show that,on the whole, for35years,from the reform and opening-up, the efficiency scores of the promotion in peasants’ income of the four subjects of the financial expenditure for agriculture in Henan is low,fluctuates frequently,fails to achieve the best efficiency,and has been declining in recent years.Finally, we studied the main determinants of changes of efficiency of the financial expenditure for agriculture in Henan,from the reform and opening-up. The regression results demonstrate that the higher the level of economic development is,the higher the efficiency of the financial expenditure for agriculture,too large size of authorities can’t raise the efficiency of the financial expenditure for agriculture,fiscal decentralization declines significantly the efficiency of the financial expenditure for agriculture, urbanization significantly inhibits the the efficiency of the financial expenditure for agriculture, industrialization significantly improve the efficiency of the financial expenditure for agriculture.Based on review of the literatures, theoretical analyses and empirical tests,we put forward the strategies about how to exert the effect of the financial expenditure for agriculture on the increase in peasants’ income. On the one hand,we must nail down the targets and emphases and at the same time, the authorities should adjust and optimize the structure of the financial expenditure for agriculture energetically and effectively,including reducing substantially the agricultural operating expenses,increasing the supporting expenses for agricultural production, appropriately increasing the expenditure for capital construction, substantially increasing the agricultural science&technology promotion funds,and properly increasing the rural social almsgiving and making it stand steadily in a certain proportion.On the other hand,what’s more important,we need to improve the economic,social,and political environment,and to innovate the institutional mechanisms including reforming the political promotion mechanism too excessively depending on the indexes,especially like GDP,not blindly expanding the size of authorities, appropriate decentralization, correct understanding and propel the process of urbanization,enchancing the quality of urbanization, vigorously advancing the process of industrialization, especially rural industrialization,changing the statistical calibers, Strengthening the supervision of the funds of the financial expenditure for agriculture,and establishing financial security mechanisms of the financial expenditure for agriculture.Ultimately, the initiative of raising the efficiency of increase in peasants’income of the financial expenditure for agriculture is in the hand of local government officials at all levels, especially in the hand of the major leading cadres.As result, the loca major leading cadres at all levels must attatch importance to issues for agriculture, rural areas and farmers peasants, particular for the issues on peasants’income,in order to pratically exert the positive effect of the financial expenditure for agriculture on the increase in peasants’ income to a maximum degree.