Theoretical Mechanism And Empirical Study On The Influence Of Fiscal Support For Agriculture Expenditure On Urban-Rural Income Gap

In the context that China’s economic development has entered a new stage of development and the size of the middle-income group continues to expand,narrowing the urban-rural income gap is one of the ways to overcome the "middle-income trap".As an important driving force to narrow the urban-rural income gap,the financial support for agriculture expenditure continues to attract the attention of policy departments,academia and the public.Zhejiang Province,as a developed city in the east of China,is one of the provinces with the smallest difference in economic development,and its economic development level ranks among the best in China.As a demonstration zone for common prosperity,Zhejiang Province has achieved remarkable results in exploring and solving problems such as unbalanced and inadequate development,and the balanced development of urban and rural areas is at the forefront of China.How to further improve the efficiency of financial support for agriculture expenditure,innovate the system of financial support for agriculture expenditure,strengthen the service function of financial support for agriculture expenditure,and release the driving force of fiscal support for agriculture expenditure to narrow the income gap between urban and rural areas has gradually become the strength of Zhejiang Province’s financial support for agriculture expenditure,but also the objective requirements in the process of narrowing the urban-rural income gap and achieving common prosperity.This paper uses panel data from 11 prefecture-level cities in Zhejiang Province from 2000 to 2021.Firstly,by analyzing the current situation of financial expenditure on supporting agriculture in Zhejiang Province,it is found that the overall development trend of financial expenditure on supporting agriculture in Zhejiang Province is increasing,and the proportion of financial expenditure on supporting agriculture in the total financial expenditure of Zhejiang Province also remains at a high level.However,compared to other areas of financial expenditure,financial expenditure on supporting agriculture in Zhejiang Province is still in a weak position in the total financial expenditure of Zhejiang Province.Secondly,by analyzing the current situation of the urban-rural income gap in Zhejiang Province,it is found that the structural income gap between urban and rural residents in Zhejiang Province is relatively large;The wage income of urban and rural residents in Zhejiang Province accounts for a high proportion of the per capita disposable income of urban and rural residents,and the absolute gap between urban and rural residents’ wage income is too large,resulting in a high contribution rate of wage income to expanding the urban-rural income gap in Zhejiang Province;The operational income gap between urban and rural residents in Zhejiang Province has the smallest contribution rate to expanding the income gap between urban and rural residents in Zhejiang Province,but its inhibitory effect is constantly weakening;The "Matthew Effect" of property income between urban and rural residents in Zhejiang Province is constantly increasing;The transfer income gap between urban and rural residents in Zhejiang Province is still too large.Thirdly,through STATA analysis of the impact of fiscal expenditure on agriculture in Zhejiang Province on the urbanrural income gap in Zhejiang Province,the empirical results show that fiscal expenditure on agriculture in Zhejiang Province has a significant role in narrowing the urban-rural income gap in Zhejiang Province,and the level of economic development and financial development in Zhejiang Province contribute to narrowing the urban-rural income gap in Zhejiang Province.Finally,based on the above analysis,policy recommendations are proposed from improving the financial support for agriculture security mechanism,improving the rural residents’ income increase mechanism,innovating the urban and rural economic development model,and optimizing the rural financial service system.