Study On Fiscal Policy Of Promoting The Consumption Of Rural Residents In China

Reform and opening up three decades, China’s GDP and fiscal revenue increased year by year, the people’s living standards improved significantly, overall national strength significantly increased. Made great achievements in economic development but at the same time, consumption as one of the three major driving forces to promote economic growth, the contribution of the role of gradually decreasing. The international financial crisis has fully exposed the serious shortcomings of the way of development in China, in the case of insufficient domestic demand, external demand fully blocked, the internal factors and external conditions support China’s rapid economic growth has undergone important changes. In this context, the transformation of economic development, promote the upgrading of consumption structure and consumption growth is the inevitable choice, stimulate consumption emphasis and difficulty in rural areas. China is moving toward the country of consumption, as the survival stage transition to the development stage, the demand structure began to change significantly, shrinking consumer demand in developed countries in Europe and the United States under the background of long-term trends, China needs to expand domestic demand, especially rural consumer demand. The countryside is a huge potential consumer market, the number of China’s focus on the most, the greatest potential for consumer groups, China’s economic growth is the most reliable, most long-lasting source of power, while the current measures to expand demand for fiscal policy, research and expand rural The demand of fiscal policy is the fundamental way of expanding domestic demand.In this paper, the analysis of the status quo of China’s rural residents’ consumption, consumer sales rate, propensity to consume, low consumer spending and consumption structure is irrational reasons, and to learn from the United States fiscal policy to stimulate the consumption of rural residents, to promote the consumption of rural residents in China financial policy recomm endations. The article is divided into five parts:The first chapter, Introduction. This chapter describes the research background and significance of the paper, research status, the main research contents and methods, as well as papers that may exist in innovation and inadequacies.Chapter Ⅱ, the consumption of rural residents in China present situation and the reason analysis. The first of China’s rural residents’ consumption from the consumption rate, consumption, spending and consumptive structure four respects undertake a general analysis. Then from the rural residents’ consumption structure proceed with empirical analysis, the rural dweller rate of consumption is reduced continuously, the propensity to consume and expenditure is low, consumptive structure level of unreasonable conclusion. According to the current situation of consumption of reason analysis, attributed to five reasons:the rural residents’ income growth rate is lower than the GDP growth rate, the income of rural residents is not stable, the income gap between urban and rural, rural infrastructure is complete, the rural consumer market environment difference.Chapter III, the study of China’s fiscal policy and consumption of rural residents. First, the nonlinear effects of fiscal policy and consumption of rural residents to verify. Concluded that:in normal times, financial income and expenditure of rural residents ’consumption Keynesian effect; two special period of austerity and expansion, the fiscal revenue and expenditure of rural residents’consumption had a significant non-Keynesian effects. Provide the basis for China to make the right fiscal policy. Then, according to the conclusions of the previous Fiscal Expenditure on consumption of rural residents.Chapter IV, the U.S. government for the fiscal policy of the rural consumer demand for reference. In this paper, to analyze the implementation of the relative success of the American experience in increasing farmers’ incomes and expand rural consumption, input and financial support for agriculture, the four aspects of a variety of financial subsidies, rural infrastructure, financial support for agricultural insurance system for reference.Chapter V, fiscal policy recommendations to promote the consumption of rural residents. The combination of China’s basic national conditions, to learn from the U.S. approach to fiscal policy recommendations to promote consumer demand, from the point of view to increase the income of rural residents. Start from the increase financial support for agriculture, improve the financial transfer payment levels, improve the consumption environment in rural areas in three aspects.