Study On The Effect Of Expenditure Supporting Agriculture On The Growth Of Peasants’ Income

As the foundation of national economy, agriculture plays an important role on thedevelopment of industrial economy as well as the stability of national economy. Since thereform and opening up, the level of agriculture productivity, has been greatly improved.But the problem of weaken foundation and slowed development of Chinese agricultureare very serious. In the final analysis, the problems of farmers, rural, and agriculture isthe problem of peasants’ income growth. Now, the growth speed of peasants’ income inchina is slow, and has large gaps as compared with urban residents. What is worse is thatthis trend may be further continuing. At the same time, the fact that the agricultureproduction mode is extensive, the technology ability is low, the scientific and culturequality is not high has caused the volatility of the peasants’ income growth, and thissituation has also depravation because of the slowdown of national economic as well asthe disappeared of demographic dividend. If we want to reverse this trend to achieve thestable growth of income, the support from government is necessary instead of theregulation solely from the market itself. As the most important tool in macro-control, thefiscal policy must take on the primary responsibility in promoting peasants’ income. Theglobal experience has proved that fiscal support for agriculture is an important means toensure peasants’ income growth. As our country, whose urban-rural dual structure is veryobvious, the fiscal support will must be the most direct, most effective and the easiestway to gain public support publicities. Recently, the fiscal support for agriculture isincreasing strength, but it is hard to reach the desired effect. There are many problems intotal amount. Structure and founds management. Therefore, this paper studies the effectsof fiscal support for agriculture to the growths of peasants’ income by using qualitativeanalysis and quantitative analysis methods.This paper is divided into six parts as follows: the first part introduces thebackground and significance about this study, summarizes the related research at homeand abroad, shows the main contents, research method, and the innovation and weak partabout this article. The second part shows the related concept and economic theory. In thethird part, this paper analyzes the present situation about fiscal expenditure for agriculture as well as the peasants’ income through many diagrams. In the fourth part,econometric model which is used to study the effect of fiscal expenditure for agricultureto the growth of peasants’ income is established to analyze some problems. The fifth partshows the main problems and the reasons for these problems about fiscal expenditure foragriculture in accelerating peasants’ income. In the sixth part, this paper puts forward tosome corresponding suggestions.The main conclusions are as follows:(1) At present, the fiscal expenditure foragriculture has certain contribution to the growth of peasants’ income, and this effect willbe strengthened in the long run.(2) The effect is different as the different part of thefiscal expenditure.(3) The fiscal expenditure for agriculture in china has insufficientscale, unreasonable structure, irregular management, the mismatching routine power andfinancial power between governments and departments in all level, the lack of long-termmechanism, and the legal lacuna.Based on the study above, this paper puts forward to some suggestions:(1)increasethe scale of fiscal expenditure for agriculture to guide the resources liquidity.(2)optimize the structure of fiscal expenditure about agriculture to improve the fundutilization efficiency.(3) strength management.(4) form the long-term mechanism.(5)strengthen supervision and constitute the related laws.