An Empirical Study On Sichuan Province Fiscal Expenditures For Supporting Agriculture And Agricultural Economic Growth

Agriculture is the source of food and clothing,the foudation of survicval,thelifeblood of national economy. The weakness character and foundamental role ofargriculture decide that it can not develop without support from government policy andfund. Fiscal policy plays a special role and ocuppies an important position in a series ofpolicies to support and protect agriculture. How to adjust and perfect the fiscal policyfor agriculture, how to improve the performance of economic growth related to thefiscal expenditure for agriculture,how to promote the development of agriculture andrural economy,all these questions become an important issue to all levels ofgovernment.This paper devolops on the foudation of an overview about Chinese and foreignscholars’ research on public finance and economic growth,and coustucts the interactionmechanism between fiscal expenditure on agriculture and agricultural economic growth.First,analyse present situation of fiscal expenditure for agriculture and the growth ofagriculture economy in Sichuan Province, from the dual perspective of total fiscalexpenditure amount and stucture for agriculture. Secondly, by using econometricmodels and software related, analyse and test the influence of total fiscal expenditureamount and stucture on the growth of agriculture economy. The basic conclusions aredrawn:①The absolute scale of fiscal expenditure for agriculture in Sichuan Province ison the increase, but the proportion which fiscal expenditure for agriculture share intotal fiscal expenditure shows a declined tendency. Compared to the level and optimalscale of international fiscal expenditure for agriculture, those of Sichuan Province is atlow level; the increase of fiscal expenditure growth for agriculture in Sichuan Provinceis in poor stability, and has not formed a long-term stable growth mechanism of fiscalexpenditure; Sichuan The fiscal expenditure for agriculture in Sichuan Province existssome stuctural problems, such as lack of expenditure used in infrastructure whichfarmers can benefit directly from, and lack of expenditure used inthe development of rural society and sicientific research.②The fiscal expenditure for agriculture，the agricultural investment in fixed assetsand the number of emplyees engaged in primary industy in Sichuan Province havepositive effec on the growth of agriculture economy. The agricultural investment in fixed assets has the biggest effct among them, the next are fiscal expenditure foragriculture and number of emplyees engaged in primary industy. In terms of influnceagricultural investment in fixed assets have on the growth of agriculture economy, threeitems of expense used agricultural science and capital construction expenditure arepositive correlated with the growth of agriculture economy, the rural welfare expensesand expenditure for supporting rural production are negative correlated with the growthof agriculture economy.③The ways to improve the performance of agricultural economic growth relatedto fiscal expenditure for agriculture in Sichuan Provience include: increse input andestablish long-term stable growth mechanism of financial support for agriculture;optimize the stucture and increse the efficiency of fiscal expenditure for agriculture;perfect management system and ensure the effective configuration of fiscal expenditurefor agriculture.