Research On Fiscal Policy Supporting Rural Collective Economic Development

As China is a great agricultural country,the development of rural economy is crucial to promote the development of the entire national economy.Under the background of establishing a well-off society in an all-round way and achieving the goal of the first-hundred-year struggle,the “three rural” ballast stone is poised for growth.The rural collective economy is an important economic foundation for the socialist system with Chinese characteristics in the countryside,and it is a booster for the realization of "agricultural beauty,strong agriculture,and peasant prosperity." The importance of developing a rural collective economy determines the need for fiscal policy support.Fiscal policy is an important means for the state to regulate the market.Farmers can fully mobilize the enthusiasm of participating in the collective by formulating a sound fiscal policy which can also increase the income of farmers and promote the development of rural collective economy.Therefore,the financial support policy should be gradually improved with the development of the rural collective economy.In view of this,how to promote rural collective economic development through further improving the financial support policy is the focus of research.This study uses a combination of normative analysis and empirical analysis to study the fiscal policy which can support the rural collective economy and try to find out the actual impact of various fiscal policies on the rural collective economy.And then propose optimization recommendations to better improve China's fiscal policy system and promote the development of rural collective economy.Based on the collation of domestic and foreign literatures,this article introduces the related concepts of rural collective economy and fiscal policy followed by discussion of the theoretical basis of fiscal policy to support rural collective economy.Furthermore,the mechanism of tax policy,expenditure policy and subsidy policy on rural collective economy will be analyzed.Moreover,it sorts out the fiscal policies supporting rural collective economic development from the four perspectives of tax preferential policies,financial subsidies policies,tax reform and special funds.It is founded that there are many fiscal policies supporting the rural collective economy and the development of the rural collective economy has already achieved certain results,but there are still problems such as insufficient financial investment,imperfect fiscal and taxation systems,imperfect fiscal expenditure structure,and low operational efficiency of tax incentives,which require continuous improvement.To further analyze the degree of influence and contribution of various fiscal policies on the rural collective economy,this study focuses on the growth of rural collective economic organizations' income,and selects indicators from the three dimensions of taxation policy,expenditure policy,and subsidy policy to construct a VAR model,establish an impulse response function,and perform variance decomposition.The empirical results show that there is a long-term equilibrium relationship and causal relationship between various fiscal policies and the income of rural collective economic organizations.It also indicates that reducing rural tax burden,increasing fiscal expenditure,and increasing financial subsidies can increase the income of rural collective economic organizations and promote the development of rural collective economy.At the same time,the contribution of subsidy policy to the rural collective economy is significantly higher than the tax policy and expenditure policy.The empirical results also show that the scale of fiscal expenditure is still small today,and the financial investment is not enough.Finally,combining with policy analysis,empirical analysis results and previous experience,this study proposes policy recommendations from three aspects: First,increasing financial investment and strengthen financial support.The second is to optimize the structure of fiscal expenditures and ensure key expenditures.The third is to improve the fiscal and taxation policies and improve the fiscal and taxation system.This study has enriched the theoretical system of fiscal policy to a certain extent,and also provided theoretical guidance for the further development of rural collective economy to provide effective reference for fiscal policy which can support rural collective economic development.