Research On Fiscal Policy To Reduce The Farmers’ Income Gap

Since the reform and opening up,the market economy has devoloped rapidly.Chinese total economic output expands rapidly,and the GDP growth has attracted the attention of the world.While the market makes some people rich,it also brings the negative effect of income gap at the same time. Henan Province,as a populous and large agricultural province,its number of the farmers is extremely large,which becomes one of the most representative provinces on issues concerning agriculture,countryside and farmers.At home and abroad,the literatures on income gap are mostly focused on the income gap between urban and rural areas. However,in fact,the peasant income gap really existis,which is very significant. In recent years,it has not been effectively controlled. Therefore,it is necessary to study the problem of peasant income gap.There are at least three kinds of impacts as following:Firstly,although the urbanization level has improved a lot currently,China is still mainly composed of the farmer.Narrowing the peasant income gap will play a crucial role on the whole social income gap;secondly,narrowing regional disparity of farmers’ income concerns the balance of fairness and efficiency. The fiscal policy will effectively solve the fairness problem,and promote the construction of the harmonious society; thirdly,the comprehensive construction of a well off society has entered the crucial stage.Narrowing the regional gap of farmers’ income and improving the farmers’ income in the less developed areas fits the policies on targeted poverty alleviation,which is advocated by the government.The paper divideds Henan Province into several parts based on the data of the farmers’ income in Henan Province between 2005 and 2014. Standards are the natural geography and the per capita GDP ranking, and the paper calculates by the standard deviation, variation coefficient and Theil index,which strives to explore the law of Henan Province farmers’ income gap comprehensively.Quantitative analysis and qualitative analysis methods are combined in this paper.Using Eviews statistical software and under the conditions of the existing data, the paper studies the effects on the income gap of farmers based on the basic level financialincome, transfer payment, the total amount and structure of financial support for agriculture, and other factors.But this article does not only rely on the quantitative analysis, it also makes a qualitative analysis on economic theory and economic facts.Main points are as follows: Whether using geographical division or economic development level based on per capita GDP ranking, using the two kinds of evaluation index system to estimate, the results are basically consistent.The absolute gap of famers’ income in Henan continues to expand and the gap among different regions is greater than the internal gap.At the same time, the change of the relative gap is more complicated,which has less regularity, We can still find that although the relative gap changes a little overall,it is always in the high,especially in the economically developed areas in Henan.Through the analysis of the previous parts, this paper suggests that the goverment should use financial means to adjust the farmers’ income gap in Henan Province, mainly to reduce the gap between different regions. These means mainly include increasing the transfer payments to the basic-level government to improve the level of financial autonomy,increasing the total fiscal support for agriculture, optimizing the structure of financial support for agriculture,strengthening supervision on the agricultural funds,improving the efficiency of the finaial funds,other supporting measures and so on.