Research On Performance Evaluation Of Fiscal Expenditure On Supporting Agriculture In Hunan Province

Agriculture is the foundation of national economic development. "Three-dimensional rural issues", ie rural issues concerning agriculture, rural areas and farmers, are issues related to the overall development of the nation, and have became problems that hinder the realization of the construction of new socialist countryside, the overall construction of well-off society and the construction of harmonious socialist society. Finance, on the on hand, provides funding to solve the "three-dimensional rural issues", on the other hand, regulates and controls the development patterns of agriculture. In recent years, with the government’s growing attention to "three-dimensional rural issues", fiscal expenditure on supporting agriculrure(FESA) keeps increasing. However, the actual effect of FESA is unsatisfactory, "there-dimensional rural issues" are still obvious. How to optimize the efficiency of FESA with limited financial funds for agriculture is becoming an urgent problem for the government. And an effective method to solve this problem is to conduct the performance evaluation of FESA and strengthen the management of the performance evaluation.Since 2001, China has started to push forwad the reform of fiscal administration system and attached great importance to the performance evaluation of fiscal expenditure, thus the performance evaluation of fiscal expenditure has been placed on the agenda. Hunan is a major agricultural province and one of the main grain-producing areas. Research on the performance evaluation of FESA in Hunan province enables us to get specific knowledge about the actual effect of FESA in Hunan Province and find out the problems in the management and use of financial funds for agriculture, thus we can take corresponding measures to improve the efficiency of FESA. It can also benefit the implementation of the performance evaluation of FESA in Hunan province in the future and put forward the reform of budget performance management.This paper starts with the analysis of "the present situation and the performance evaluation of FESA in Hunan province"on the basis of defining related concepts and combing through related theories by going through relevant research achievements. In chapter 3, the present situation of the scale, the structure and the supervision of FESA in Hunan province, together with problems of incomplete system of evaluation index, narrow evaluation scope, lack of effective application of the evaluation result are analyzed in detail. Also, the "construction of performance evaluation index system of FESA in Hunan province" is discussed theoretically. In chapter 4, based on the analysis of the goal, the object, the subject, the method, the standard and the index system design principles of performance evaluation of FESA, three systems of evaluation index, according to the comprehensive performance evaluation of FESA, the performance evaluation of department, the performance evaluation of project, are built combined with the present situation of FESA in Hunan province. And these three index systems are applied to make "practical investigation and comment on the comprehensive performance and program performance of FESA in Hunan province". In chapter 5, quantitative index and DEA model are applied to evaluate the efficiency of FESA in Hunan province. It suggests that the overall efficiency of FESA in Hunan province, which slightly increases year by year, is relatively high, but the regional disparity is huge; Multiple linear regression equation is adopted to evaluate the effectiveness of FESA in Hunan province. The result shows the existence of a notable positive correlation between FESA and the agricultural economic growth and the growth of peasant’s income, but the regression coefficient is not big; VAR model is used to evaluate the fairness of FESA in Hunan province, suggesting the positive influence of FESA in Hunan province on narrowing the urban-rural income gap. In chapter 6, the assessment of subsidy program for swine breeding in xx county in Hunan province is conducted through case analysis, which is carried out from the dimensions of operational management, financial performance, service object and sustainability. The result shows that the overall performance of the subsidy program is good, while the performance of the dimensions of financial performance and operational management are relatively low. Finally," the performance improvement of FESA" is discussed. In chapter 7 by introducing some successful experience of some countries abroad on the FESA and performance evaluation of public expenditure. And beneficial revelations for the performance improvement of FESA in Hunan province are obtained. In chapter 8, suggestions on the perfection of performance evaluation system of FESA and corresponding result application system in Hunan province are proposed, so as to standard the performance evaluation of FESA which aims to promote the performance of FESA. In the end, according to problems found in the performance evaluation of FESA in Hunan province, several measures are proposed to improve the performance of FESA in Hunan province from the input, the expenditure structure, the funds transfer, the integration of funds and the supervision of the entire expenditure process of FESA.