On The Fiscal Policy Support Of Agriculture Development

At present, China’s economy enters a New Normal, which is shifting gear from the previous high speed to a medium-to-high speed growth. In the condition of economic growth slowdown and hard resource and environmental constraints, how to guarantee the effective supply and quality and safety of agricultural commodity, and to improve the sustainability of agricultural development are two major issues to be confronted. On February 2015, the CPC Central Committee and the State Council issued the Opinions on Deepening the Reform and Innovation to Accelerate the Agricultural Modernization. The document states:a strong agriculture is a prerequisite of a strong China. To build a strong agriculture, it is required to shift from extensive cultivation that pursues high output at the cost of resource depletion to an intensive modernized way that characterized by efficiency, safety, resource conservation and environment friendliness by addressing quality-and-quantity balance, competitiveness improvement, technical innovation and sustainable development. As a core measure of the government’s macro control to agriculture, the Financial Support for Agriculture (FSA) is the main force to accelerate the construction of modern agriculture. Unfortunately, its role in modernizing agriculture is limited due to the restriction of natural resources and financial system. Based on the analysis of the structure of the FSA, the thesis draws a conclusion that China’s FSA is facing situations including:insufficient fund; low proportion of productive outlay; inadequate technological investment and imperfect fund management system. In addition, the cost-effectiveness of agricultural is naturally low. The price of Chinese agricultural commodity is higher than that in the international market. The bearing-capacity of environment and resources is constrained. Rural human resource is reducing. All these factors combined to hamper the further improvement of the overall agricultural productivity. Therefore, the thesis puts forward political proposals in two major aspects. In aspect of choosing agriculture areas, it is suggested to adjust the agricultural layout by dividing agricultural areas into key development zones, productive development zones and restricted development zones. In aspect of financial support, it is proposed to increase the proportion of productive outlay, to strengthen the agricultural technological investment, and to plan and distribute finance according to the factor method.