Research On The Fiscal Agricultural Expenditure

Agriculture is the foundation of the national economy.The backward development of agriculture will affect the development of other sectors of the national economy and affect the stability of the society.The basic and inferior characteristic of agriculture determine the inevitability of the fiscal support and protection for agriculture,but the support and protection policies are not immutable,that is to say,China’s fiscal agricultural expenditure systems,mechanisms and policies must be changed subject to the changes of China’s agricultural development stage.In the past,food shortage was the major contradiction in China’s agricultural development.Therefore,since the Reform and Opening-up 40 years ago,except for minor years taking the restructure as the target of fiscal agricultural expenditures owing to the difficulty in selling agricultural products,most of the fiscal agricultural expenditure policies are concentrated on the production increase and the supply guarantee.In particular,since 2004,China’s fiscal agricultural policies were more focused on the grain output growth,for instance,a series of stimulus policies for the grain production enhancement such as the “Direct Subsidy on Grain Production” and the “Price Subsidy on Grain Wholesale”.The agricultural production enhancement-oriented fiscal expenditure policies have been promoting China’s agricultural development and peasants’ income increase.China’s agricultural development level has been continuously reaching the new stages,entering the new era;however,confronting the new problems and contradictions.China’s major agricultural contradiction has been gradually transformed from the supply shortage in the past into the structural contradiction,manifesting that the oversupply and the supply shortage co-exist at the same time,a major contradiction in the supply-side.The output,the stock and the import of some agricultural products have been raised,a term of “Three Volumes Increase”,but some high-quality agricultural products are still under the shortage.Under such circumstances,the agricultural production enhancement-oriented expenditure policies are practically meaningless and might even further distort and negatively affect the agricultural development.The agricultural supply-side structural contradiction has become the main contradiction of China’s agricultural development,and the agricultural supply-side structural reform has become the keynote of agricultural works of China’s government.Thus,the fiscal agricultural expenditure systems,mechanisms and policies must also be adjusted and reformed under the agricultural supply-side structural reform.The paper’s key points are to research on what the fiscal agricultural expenditure systems,mechanisms and policies should be.In the paper,the historical method,the comparative method,the combination method of qualitative and quantitative,the combination analytical method of empirical and normative,the combination method of systematic and critical,and the combination analytical method of dynamic and static are used to research on the topic.The paper mainly explores the following aspects,and concludes:In the first place,the paper analyzes the status quo,the challenges confronted and the underlying supply-side structural contradictions of China’s agricultural development,summarizes the major targets and fundamental approaches of the agricultural supply-side structural reform,analyzes the necessity of the fiscal-supported agricultural supply-side structural reform,states the general demand of the agricultural supply-side structural reform to the fiscal agricultural expenditure.Secondly,the paper theoretically explains the agricultural products’ “Three Volumes Increase” results caused by the traditional production enhancement-oriented fiscal agricultural expenditure policies,takes the simplified agricultural products market supply and demand model,the social surplus theory and the production-possibility frontier theory as the tools to analyze the mechanism of fiscal agricultural expenditure on the agricultural supply-side structural reform,analyzes and proposes the path of the fiscal policies on the agricultural supply-side structural reform.Thirdly,the paper reviews the historical evolution of China’s fiscal agricultural expenditure,summarizes the present situation of the system,the size and the structure of China’s fiscal agricultural expenditure,points out the latest progresses of the fiscal agricultural expenditure reform based on China’s agricultural supply-side structural reform.Fourthly,based on the agricultural supply-side structural reform perspective,the paper constructs the fiscal agricultural expenditure effect model,respectively analyzes the effects of the fiscal agricultural expenditure on the agricultural industrial structure,the agricultural output,the peasants’ income growth and the agricultural green development.The results illustrate that the fiscal agricultural expenditure policies like the “Direct Subsidy on Grain Production” and the agricultural products prices supporting policies have a significant effect on the industrial restructure,but the long-term production enhancement-oriented fiscal agricultural expenditure policies have also gradually facilitated the structural contradictions such as the “Three Volumes Increase” of some agricultural products.The increased fiscal agricultural expenditure significantly facilitates the raised agricultural output;however,the relatively low general technology(A)implies that the technological progress does not dedicate much to the agricultural output,and the fiscal agricultural expenditure on science and technology is relatively small.The fiscal agricultural expenditure has significantly improved the average income of China’s peasants;nevertheless,the elastic coefficient is less than 1,the effects of the fiscal agricultural expenditure are waited to further improve.The fiscal agricultural expenditure is positively correlated to the agricultural pollution.Fifthly,based on the current situation of agricultural development as well as the result of the effect analysis,the paper points out the main shortfalls of China’s fiscal agricultural expenditure,including the inadequate fiscal agricultural expenditure management systems,the irrational structures,the relatively small scales and the improper ways,etc.Sixthly,the paper sums up the evolutionary processes,the main contents and the major characteristics of the foreign fiscal agricultural expenditure,summarizes the successful foreign experiences,claims some references to China,such as establishing the relatively sound law on the fiscal agricultural expenditure,supporting the establishment of the agricultural economic organizations,observing the market rules and focusing on the guiding effect of the fiscal funds,supporting the agricultural insurance development,supporting the industrial restructures and facilitating the supply and demand balance.In the final analysis,the paper mentions the recommendations of the fiscal agricultural expenditure of moving the agricultural supply-side structural reform forward.The recommendations mainly include changing the principles,the ideas and the methods of the fiscal agricultural expenditure,improving the managerial systems and the mechanisms of the fiscal agricultural expenditure,optimizing the scales and the channels of the agricultural investments,ensuring the key expenditures to facilitate the agricultural supply-side structural contradictions solving,improving the agricultural products prices supporting policies,building up the long-term mechanism of supporting the agricultural green development.