Research On The Impact Of Village Expenditure Structure On Village Level Debt Growth

With the abolition of the agricultural tax in China,the burden of farmers' agricultural production has been significantly reduced,which has brought about an opportunity to solve the problem of “agriculture,rural areas and farmers” in China.At the same time,it has also brought about new changes in the original debt contradictions in rural areas.Exemption of agricultural tax,the village collective organization lost the important source of tax revenue,through taxes and set aside as a whole to repay the village-level debt is no longer feasible,village-level debt levels increase year by year,which gave the grass-roots regime of stable,rural economic development and increasing farmers' income have a certain impact,which also hindered the country revitalization strategy implementation.As a special product of economic and social economic development in various regions of China,village-level debt has become an urgent problem to be solved in rural areas of China.This paper studies the problem of village level debt,which is of great theoretical and practical significance for promoting the development of rural economy,consolidating the grass-roots political power and building social stability and harmony.This paper uses the village-level economic statistics of 870 villages in 87 districts and counties in Zhejiang Province from 2008 to 2017 to explore the general situation of village-level liabilities in Zhejiang Province,and uses panel data model to analyze the impact of expenditure structure on village-level debt ratio.In-depth study of the reasons for the formation of village-level liabilities,and propose countermeasures for the settlement of village-level liabilities.The main research processes and conclusions are as follows:(1)Based on the theory of public goods,the theory of rural governance and the analysis of the difference between corporate debt and village-level liabilities,the mechanism of rural debt formation is explored.The study believes that the village-level liabilities are closely related to the supply of public goods,the diversification of supply entities,the imbalance of public goods supply,and the inequality of financial rights and powers in the supply process,resulting in village-level liabilities,and because of the differences between them and corporate liabilities.Village-level liabilities are difficult to provide a variety of debt repayment guarantees and bankruptcy liquidation methods.(2)Using the economic statistics of rural areas in Zhejiang Province for 10 years,the analysis shows that Zhejiang's debt growth is obvious,and the growth rate is above 10%.The old debt interest rate is an important factor for debt growth,and Zhejiang's assets and liabilities.The rate is constantly increasing.Through the cross-analysis of the expenditure structure and the village-level liabilities,it is found that there is a clear correlation between the expenditure structure and the growth of liabilities.(3)Using panel data to study the village asset-liability ratio,it is found that the proportion of operating expenditure has a negative impact on the village-level debt growth,and the proportion of agricultural expenditure has a positive impact on the debt growth,while the proportion of management expenditure is not obvious.In terms of control variables,the village population,debt dependence and inventory have a positive impact on the village-level debt growth.The subsidy intensity and the village collective economic income have a negative impact on the village-level debt growth.(4)According to the research conclusions,the following suggestions are proposed: 1 to develop the village collective economy;2 to regulate the village-level financial management system;3 to adjust the financial transfer payment structure.