An Analysis Of The Fiscal Expenditure For Agriculture And Its Performance In China

Agriculture is the pillar industry of a national economy. Since the year of2004, the First Central Document of Communist Party of China focused on Issues of agriculture, farmer and rural area for six consecutive years, which reflects the Issues relating agriculture, rural areas and farmers remains top priority in China. What’s more, the performance of fiscal expenditure for agriculture has always played an important role in the progress of agricultural development or farmers’ income. Based on this, the dissertation analyzes the necessity of fiscal expenditure for agriculture, then studies the performance of provincial and regional fiscal expenditure for agriculture by using the panel data and super-efficiency DEA approach, and put forward the suggestions to improve the performance of fiscal expenditure for agriculture in China.This dissertation defines the improvement of fiscal expenditure for agriculture as the promotion of social welfare in rural areas that is the progress of agricultural development and farmers’income. Firstly, based on defining the main concepts, the dissertation analyzes the importance of fiscal expenditure for agriculture from the perspective of industrial characteristics of agriculture, then sorts and summarizes the experience of typical countries’fiscal expenditure for agriculture. Secondly, the dissertation uses detailed and accurate data as well as a large number of charts to describe the scale and track changing of fiscal expenditure for agriculture in China since reform and opening up, then to obtain the conclusion that the relative size of fiscal expenditure for agriculture is still small and the structure is imbalance. Thirdly, the dissertation studies the performance of China’s fiscal expenditure for agriculture in two steps:the first step, discusses the relationship of China’s fiscal expenditure for agriculture and the improvement of agricultural development or farmers’income to reveal the true effects of fiscal expenditure for agriculture on its performance improving, and to reveal the logical relationship of performance evaluation indicators by the usage of1999-2007provincial panel data; the second step, based on the conclusions of panel data regression, studies the performance of provincial and regional fiscal expenditure for agriculture by the usage of super-efficiency DEA approach. The results show that:minor-caliber agricultural expenditure as well as expenditure on agricultural infrastructure、science&technology and rural social relief have positive effects on improving the performance of fiscal expenditure for agriculture, but the function of the agricultural science&technology expenditure on the promotion of farmers’ income is not statistically significant; the performance of fiscal expenditure for agriculture in China is still on the low level and the regional or provincial difference is remarkable; based on the data of2007, we find that there are different approaches to improving the performance of fiscal expenditure for agriculture to each DEA invalid province, while the expenditure on agricultural infrastructure could be saved at the most greatest degree compared with the other inputs. Finally, based on the theoretical analysis and findings of empirical research, we put forward the suggestions to enhance the performance of fiscal expenditure for agriculture in China.