Study On Fiscal Policy For Natural Forest Protection Project In China

In the course of the country's fast economic growth, accumulation of social wealth and highly progress of material civilization, we have to face such reality that Natural Forest was destroyed badly, water and soil erosion became more serious, the general tendency of desertification was enlarging, biological diversity were decreasing and deterioration of eco-environment. These facts have restricted the sustainable development of social economy and implementation of ecological civilization. The natural forest resource has shown several unique effects in many aspects such as climatic regulation, resisting nature disaster, and hindering ecological deterioration. The obvious external effect and typical public goods charateristics of natural forest resources, requires objectively funds investment of Natural Forest Protection Project (NFPP) should be input into the public financial system. Establishing a national long-term and stable investment as the main subject investment mechanism is the fundamental guarantee and strong power for the sustainable management of forest resources.The reform direction of public finance system in our country is to contain its function of production and construction, withdraw from the competitive field, take the infrastructure, public welfare and public works as the investment orientation gradually.China's current fast-growing economy has improved the financial capability of supply and guarantee. The stage of industry-financed agriculture(inclued Forestry) has arrived. Many policy have been utilized to improve the agricultural production and living conditions, to increase farmers' income, more and more capital used to ecological protection. So, the Natural Forest Protection Project has an opportunity of financial resources.Natural Forest Protection Project has established a investment policy to take the public finance investment as the mainstay, to absorb the social capital extensively which speed up the development of forestry and promoted the ecological ivilization. Based on the analysis of evaluating financial investment policy to the natural forest protection project, works in the eco-efficiency, social and economic benefits have achieved remarkable results, the trend of ecological deterioration has been initially checked, and the socio-economic situation in Natural Forest Protection Project areas has improved. However, many problems have exposed in the implementation of the Natural Forest Protection Project, such as birth defects in the engineering design plan, lack of investment to the necessary infrastructure in forest areas, low construction of local matching funds and slow pace of development of the substitute timber industry.The common practice in developed countries to protect and develop forest resources is for the government to provide protection and support of forestry, to promote the development of forestry development with a set of fiscal policy. The only difference is the degree, focus and the specific choice of financial policy to support forest conservation in different countries, but the essence of it is all countries have the forestry as key areas of a public financial expenditure to support. These experiences are worthwhile to be widely used.NFPP is a comprehensive, protracted and common weal system engineering. Over the long run, the public finance distribution system must be established in adaption to forestry ecological construction , sustainable and stable investment mechanism will strength the financial support for forestry ecological construction especially the NFPP . The mechanism of fund investment to NFPP involving of all aspects of forest region, it is necessary to explore new situation and new problem incessantly, to continuously perfect the financial policy of investment of NFPP.