Research On The Effect Of Fiscal Expenditure To The Farmer Income

Agriculture is the basic industry, its degree of development often relates to acountry and area of the healthy operation of national economy. But agriculture is aweak and positive externality obvious industry, therefore, in the process ofindustrialization, it is necessary for the government through financial support, toensure the sustainable development of agriculture, so as to maintain the wholenational economy and social stability. Inner Mongolia is a predominantly agriculturalarea, agriculture is very important for Inner Mongolia, play a decisive role both in theincome of the farmers and in the various contributions. The development ofagriculture and the rural economy, increasing the income of farmers has been one ofthe focuses of the government financial work.Since1978the reform and opening-up policy, although income levels rising, butalso expanding income gap between residents. Increase farmers’ income is the key tonarrow the income gap between urban and rural areas, and a stable social order.Financial is a means of macro-control, its invested funds for the mitigation of suchbottlenecks, which in turn has an important role to increase farmers’ income.Therefore, this topic has great theoretical and practical significance.Firstly, through the analysis of the Inner Mongolia1978-2012years of fiscalexpenditure scale status and current situation of farmers’ income, the conclusion is theInner Mongolia financial expenditure is insufficient, which is mainly manifested inthe fiscal expenditure proportion of total expenditure decreases; fiscal contribution tothe development of agriculture and rural economy is relatively low.Secondly, by analyzing the structure of Inner Mongolia fiscal expenditure, fiscalexpenditure structure of Inner Mongolia is not reasonable, which is mainly manifestedin the agriculture administrative expenses, rural infrastructure expenditure unbalanceand the cost of agricultural science and technology is relatively low.Once again, through the empirical analysis of the influence of Inner Mongoliafinancial support to farmers’ income, using the vector autoregressive model, throughthe stationary test, cointegration test and error correction model to explain betweenInner Mongolia fiscal expenditure for agriculture and farmers’ income of short andlong wave. And through the study found that, there exists a long-term relationship ofInner Mongolia fiscal expenditure for agriculture and farmers’ income. The last, to improve the fiscal policy measures of Inner Mongolia fiscalexpenditure for agriculture and farmers income, namely, increase financial support foragriculture, to ensure the stable growth of income of the farmers; optimization offiscal expenditure structure, further promote the increase of farmers income;strengthen the management of financial funds for agriculture, to high efficiency in theuse of funds; increasing farmers’ income from household business subsidies; Continueto implement the policy of direct subsidies to farmers, increase policy of income forfarmers; improve the quality of the farmers, to break through the bottleneck ofincreasing the income of farmers; actively promote the development of specializedcooperative organizations of farmers, increase business income of farmers industry;and develop the private economy actively, to expand their employment space.