The Research On The Influence Of Fiscal Expenditure On Rural Residents’ Consumption Of Guangxi Province

How to stimulate private consumption and domestic demand is related to the healthy and sustainable development of China’s economy, and alleviating the shortage of rural residents’ consumption is particularly critical. One of the main reasons of China’s insufficient domestic demand is insufficient consumption of rural residents, but the deep reasons are including difficulties of improving rural residents’ income, inadequate social security system in rural areas and harsh consumption environment in rural areas, etc. As an important national macro-control means, fiscal expenditure policies have an important role in promoting farmers’ income growth, expanding consumer demand in rural areas, improving the social security system in rural areas, optimizing rural consumption environment, etc. Therefore, the study of the impact of fiscal expenditure on agriculture for household consumption in rural areas is not only conducive to examine the effect of financial support for agriculture, provide realistic support for agriculture policy formulation and adjustment, but also put forward some effective recommendations to take advantage of financial support for agriculture to stimulate consumption.This paper, under the framework of public finance and related theory of impact mechanism of fiscal expenditure on consumption of rural residents, carried out a detailed analysis of the status of Guangxi financial support for agriculture and rural household consumption expenditure. Based on the theoretical analysis and the analysis of the current situation, this paper carried on empirical analysis of the relationship between financial expenditure and consumption of rural residents during the period from1980to2012, through the establishment of VAR models and analysis methods used the measurement of Granger seized, impulse response, variance decomposition, and then draw the conclusion that fiscal expenditure of Guangxi has obvious squeeze effect on household consumption in rural areas. Finally, based on the theoretical and empirical analysis, this article put forward some stimulus policies and measures on how to enhance the influence of Guangxi fiscal expenditure on rural residents’ consumption, which includes that expanding the scale of financial support for agriculture, improving rural residents’revenue growth mechanism, reinforcing financial support for agriculture fund management, optimizing the consumption environment in rural areas, improving the social security system in rural areas, etc.