| Poverty is a serious problem in the world, while the rural population accounts for the majority of the poverty-stricken people. China is a large agricultural country and agriculture is the foundation of the national economy. The rural population accounts for47.43%of the total population in China, while the poverty population is nearly one hundred million. It is an important task to keep the sustainable development of economy that accelerating agricultural development speed and improving the living standard of farmers and reducing rural poverty incidence in an agricultural country like China at the primary stage of socialism. The fundamental position of agriculture has long been emphasized by the government. The government has been committed to rural poverty alleviation. The number of poor rural population has greatly reduced since reform and opening-up, but there are still serious poverty problem in some poor regions.It is decided by the Agricultural externality and fragility that the development of rural areas and farmers incomes cannot do without the attention and support of the government, and the fiscal support expenditure in agriculture is the main national policies to support the rural agriculture.Guizhou Province is in the east of the Yunnan Guizhou Plateau and it is a traditional agricultural province whose typical characteristics of topography is the Karst. Due to the disadvantageous factors such as the history, geography, traffic. Guizhou became one of the poorer provinces. Bijie is located in the northwest of Guizhou Province and it is one of the most backward poverty areas. Bijie district is consist of8counties,5of which are state poverty counties.Since the establishment of Bijie test area in1988, rural poverty in Bijie has been significantly alleviated, though compared with other parts of the country there are still gaps between them, which reflects the fact that the poverty reduction process is still constrained. The reduction of rural poverty relates to stable and harmonious development of social economy. The fiscal support to agriculture of local government not only plays an important role on rural development, agricultural development and farmers’ income increment, but also has protective and supporting effect on Poverty Alleviation.Since2002, there is a trend of rapid growth in the public finance expenditure. The fiscal expenditure for agriculture has been greatly improved in absolute volume, but in relative quantity is obviously insufficient. The scale of fiscal expenditure showed instability.In terms of fiscal expenditure structure, the agricultural capital construction expenditure accounted for a larger proportion of expenditure, which is beneficial to the construction of rural infrastructure and create conditions for agricultural development and farmers’ income increment. The rural welfare fee proportion has been relatively low which has certain negative effects on developing the agricultural economy and improving the living standards of farmers in the test area for a long term. The proportion of the agricultural science and technology fee is between the change in the1%-3%which was at the lowest position. The low expenses in science and technology about agricultural is not conducive to not only the development of agriculture modernization but also the growth of the agricultural economy.Due to the deficiencies in its scale and structure, fiscal expenditure in Bijie test area failed to promoting agricultural economic, increasing the income of farmers and reducing poverty.Recently years, the quantity of poor people and the poverty rate has declined. ut at present, there are still more than2,000,000people in Bijie test area with a total population of8.8million, living below the poverty level.Poverty situation is still grim.The panel data from2002to2012of the rural poverty rate and fiscal expenditure in various districts and counties of Bijie test area have been analysed in this paper. The PANEL DATA model has been established to investigate the effect of each subproject of fiscal expenditure on poverty reduction in rural area. Evaluate the poverty reduction effects of various channels and put forward suggestion according to the results of empirical analysis. The conclusions of the study shows that the fiscal expenditure on agriculture of Bijie test area are related to farmers’ income and the incidence of poverty. The effect of expenditure on supporting agricultural production and agricultural capital construction is obvious.Expenditure for supporting agricultural production was used to support rural development. It can directly act on agricultural production, improve agricultural efficiency, increase farmers’ income and reduce the incidence of poverty in rural areas in a short period of time. Expenditure for Agricultural capital construction was used to improve the standard of infrastructure such as Rural Road and agricultural water conservancy facilities. The expenditure can promote the development of rural economy and provide more channels for the farmers to increasing income. This indicates that rural economic development has a strong dependence on rural infrastructure. The effect of rural welfare expenditure on increasing farmers’ income and reducing rural poverty rate is weak. The effect of expenditure agricultural science and technology is weak that increasing farmers’ income and reducing rural poverty incidence. At the end of this paper, a series of suggestions have been put forward from different angles. Such as ensuring the security system environment, establishing fund stable growth mechanism, optimizing the structure of fiscal expenditure, improving the efficiency of fiscal expenditure,standardizing the operation and management mechanism of fiscal expenditure,improving the financial expenditure management system, building the financial supervision mechanism of vertical fiscal expenditure, strengthening performance appraisal of fiscal support for agriculture capital of Bijie test area of fiscal expenditure on agriculture and so on. |
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