Research On Fiscal Policies For Promoting Consumption Demand Of Rural Residents

It has been nearly 30 years since our state reformed and opened in 2008. During this period, our GDP and state revenue has increased with years, people's living standards have a perceptible improvement, and our national power has strengthened remarkably. Meanwhile, the consumption devotion has been smaller and smaller, since the consumption is one of the motive-force to the economic development. It's a serious imbalance between consumption and investment structure. The primary cause for our low domestic demand is the low of consumer demand, especially the rural residents'. Rural area is a tremendous potential consumption market in our country which concentrates the most and biggest potential consumption groups, and the reliable & endurable motional resource to economic growth. Hence, enlarging demand in rural area is the fundamental way to expand domestic demand. Nowadays, the main reason of the low consumption demand in rural area is that the rural residents'income level is low and increases slowly. In addition, with the effect of traditional views, the consumer exception, the wide gap of income between city and country, the shortage of social security system and infrastructure construction in rural area, and so on, all these factors have conditioned the growth of consumption demand in the country.This paper will find the reason of the low consumption demand by analyzing the current situation about consumption in rural area, bring forth the practicality to improve the consumption demand of the rural residents, draw lessons from other countries'advanced financial experiences about how to expand domestic demand and consumption, and put forward some reasonable financial proposals in increasing the demand in the country. This paper contains 5 chapters:Chapter 1 firstly describes the background and significance of the subject, secondly summarizes Consumer economics and western fiscal science about consumption demand theory, sum up the native scholars'research about consumption problems in rural area recently, finally introduces the research content and approach.Chapter 2 gives the concepts about consumption rate, then analyzes the fluctuation of the consumption rate in our state over the years, compares between the people ratio and the ratio of the sales figures about consumer goods in the country, contracts the per capita consumption expenditures in a family between cities & countries, also compares our state's consumption rate with the world standard in corresponding period, finally offers an analysis of the consumption situation in our rural area.Chapter 3 analyses the cause of the low consumption demand in the country.Chapter 4 draws lessons from other countries'advanced financial experiences about how to expand domestic demand and consumption, such as USA, Japan, Russia, and Developing countries.Chapter 5 provides some rational financial proposals by feasibility analysis from the factors such as distribution system, transfer payment in state revenue, supporting system to thecountry in state revenue, infrastructure construction, consumer market system etc.