A Study On The Threshold Effect Of Anhui Province’s Financial Expenditure On Rural Income Under The Background Of Rural Revitalization

In recent years,the Chinese government has strengthened its support for the rural revitalization strategy,continuously improving the level and quality of rural economic development.Anhui Province has also achieved certain results in implementing the rural revitalization strategy.However,the growth of farmers’ income has been a bottleneck restricting the development of rural economy.How to effectively utilize fiscal expenditure to support agriculture and promote the growth of farmers’ income has become an urgent problem to be solved.Therefore,this article uses threshold regression model to study the impact of fiscal expenditure on agriculture on farmers’ income under different economic development levels in Anhui Province,and explores how to promote rural revitalization and increase farmers’ income.This article first analyzes the impact mechanism of fiscal expenditure on agriculture on farmers’ various incomes from four perspectives: agricultural infrastructure expenditure,support production expenditure,agricultural science and technology expenses,pension and social relief fees,including optimizing the quality of agricultural products to increase operational income,providing employment opportunities to increase wage income,and providing relief fees to increase transfer income.Then,from three aspects: the absolute and relative scale of fiscal expenditure on supporting agriculture,the overall and structural changes in farmers’ income,and the trend comparison between fiscal expenditure on supporting agriculture and farmers’ income,the current situation of fiscal expenditure on supporting agriculture and farmers’ income in Anhui Province is studied.Then,the DEA model is used to calculate the financial expenditure on agriculture,using the financial expenditure on agriculture as the input indicator,and the resulting comprehensive efficiency is used as a measure of the level of financial expenditure on agriculture.Through empirical testing of relevant data from 2007 to 2021 in 16 prefectures and cities in Anhui Province,it is found that fiscal expenditure on agriculture is not only a linear relationship to farmers’ income,but also has a triple threshold effect.In areas with low levels of economic development,there is a negative correlation between the level of fiscal expenditure on supporting agriculture and the per capita disposable income of farmers.With the improvement of economic level,the role of fiscal expenditure on supporting agriculture in promoting the growth of farmers’ income is becoming increasingly evident,showing a positive correlation.In addition,this article also finds that agricultural technology,urbanization level,social security expenditure,industrialization level,and human capital can promote farmers’ income growth to a certain extent,while land resources have a negative impact on farmers’ income.Further analyzing the composition of farmers’ income,this article finds that the level of fiscal expenditure on agriculture has different effects on farmers’ wage and non wage income at different stages of development,and the overall performance is that the higher the level of economic development,the more obvious the promotion effect.Based on the above empirical results,this paper puts forward the following policy recommendations: rationally planning fiscal expenditure funds for agriculture to promote industrial prosperity;Emphasizing the heterogeneity of regional development and achieving ecological livability;Establish a long-term mechanism for financial expenditure on agriculture to promote the construction of rural civilization;Improve the management system of financial support for agriculture and improve the effectiveness of governance;Broaden the sources of farmers’ income and promote the effective implementation of governance.Through comprehensive coordination and promotion of the above policies,the goals of the rural revitalization strategy can be achieved,helping farmers achieve income growth and improve their living standards.In summary,the results of this study indicate that fiscal expenditure on agriculture has a threshold effect on farmers’ income,and it is necessary to consider the level of economic development and resource endowment of the region in order to formulate corresponding policies and measures.Only through a series of comprehensive measures such as strengthening investment,deepening reform,and improving systems and management mechanisms can rural revitalization be comprehensively promoted,and sustainable development of farmers’ income and rural development be achieved.