Research On The Efficiency Of Fiscal Expenditure For Agriculture

The weakness of agriculture and its importance in the national economy call for financial support. In recent years, the Party Central Committee has attached great importance to the "three rural" work. From 2004 to 2014 the introduction of No.1 central document also has concentrated on the "three rural" for 11 consecutive years. The Central Committee and all levels of government have increased its financial support to agriculture. To a certain extent, it promoted the development of agriculture, improved the income of peasants as well as rural style. But the policy effect is not obvious. Farmers’ income is still growing slowly. The gap of income, economic development and cultural level between urban and rural areas is still large. About the reasons, many scholars believe that the scale of government fiscal expenditure is not enough. At the same time there are also scholars questioning on the administrative efficiency of government departments, arguing the low efficiency of financial funds for agriculture use.Based on that, this paper tries to elaborate the following questions. How is the status quo of fiscal support for agriculture in China? Has the capital use efficiency of fiscal support for agriculture in China improved in recent years? And how is the relative efficiency of financial funds for agriculture use from the autonomous region government?Firstly, this paper analyzes the necessity of the efficiency in the use of financial funds for agriculture through reviewing the domestic and international researches on the fiscal expenditure and referring to previous mature theory. Secondly, we analyze the status of fiscal expenditure of our country in recent years. Thirdly, in order to calculate the dynamic trend of use efficiency of Chinese agriculture finance analysis in recent years, we use the DEA-malmquist index method to calculate the total factor productivity in agriculture adapting the panel data during 2004-2011 years in various provinces of agricultural input and output variables. And then we use three stage DEA model to analyze relative efficiency of the financial fund for agriculture use of China’s provinces and autonomous region government. Finally, according to qualitative and empirical analysis of this paper, we put forward relevant policy suggestions.Through the empirical analysis, we draw the conclusions:China’s TFP average did not keep the increasing trend year by year but in the fluctuations of the state; China agriculture total factor productivity growth is mainly derived from the growth of technical progress. The low comprehensive efficiency of 30 provinces and autonomous regions in China (except Tibet) is mainly derived from the low efficiency of the financial fund for agriculture use. As well as that, it is influenced by environmental factors greatly; its scale efficiency is low and influenced by environmental factors, mostly in the decreasing returns to scale; pure technical efficiency level is high and little affected by environmental factors; the low overall efficiency of the financial fund for agriculture use is mainly affected by the low scale efficiency.