Research On The Impact Of Henan Province’s Financial Expenditure On Agricultural Support On Peasants’ Disposable Income

As a large agricultural country,China has been actively using financial expenditure to support agriculture and other measures to help the development of agriculture and rural economy and continuously improve the living standards of farmers.However,affected by the urban-rural dual system,the ratio of disposable income between urban residents and rural residents in China will still reach 2.56 times in 2020.Optimizing fiscal expenditure and other policy measures to drive farmers’ income and increase income is still a problem that needs attention in the field of "agriculture,rural areas and farmers" development at the current stage.Agriculture plays an important role in the social and economic structure of Henan Province and the national agricultural development system.The Henan Statistical Yearbook in 2021 shows that the income gap between urban and rural residents in Henan Province will be 2.16:1 in 2020,which is better than the national average,but is significantly different from the local goal of reaching 2.1:1 in 2025.Therefore,it is of great significance to explore the impact mechanism of fiscal expenditure on agriculture on farmers’ income and put forward optimization suggestions for fiscal expenditure on agriculture in Henan Province,which will improve farmers’ income in Henan Province and narrow the per capita disposable income gap between urban and rural residents in Henan Province.On the basis of clarifying the connotation of fiscal expenditure on supporting agriculture and rural residents’ income,this paper briefly describes the main theoretical content of the study,focuses on the current situation and changing trend of fiscal expenditure and farmers’ income in Henan Province from 2011 to 2020,verifies the impact of fiscal expenditure on supporting agriculture in Henan Province on farmers’ income,and puts forward reasonable suggestions for the effect of fiscal expenditure on supporting agriculture in Henan Province on increasing farmers’ income.This paper is based on the relevant data on financial expenditure for supporting agriculture and per capita disposable income of farmers published in the 2011-2020 Yearbook Statistical Yearbook of Henan Province,using literature,comparative analysis,Granger causality test,model analysis and other research methods,and draws the following main research conclusions:(1)The total fiscal expenditure of Henan Province has increased by about 0.84 times between 2012 and 2021,which is always in the top two places compared with neighboring provinces,and the total growth rate of fiscal expenditure on agriculture has always maintained a positive growth;The proportion of fiscal expenditure on supporting agriculture in the local general public budget expenditure is maintained at about 11%,which is slightly inferior compared with the surrounding provinces;The ratio of fiscal expenditure on supporting agriculture to total agricultural output value shows a fluctuating upward trend,and there is still room for further improvement compared with surrounding provinces;Compared with neighboring provinces,the intensity of fiscal support for agriculture is relatively low.(2)The absolute amount of per capita disposable income of rural residents in Henan Province increased 1.33 times from 2012 to 2021,but the difference between the per capita disposable income of rural residents and that of urban residents was still as high as 19562 yuan,up 51.44% from 2012,highlighting the need for Henan Province to take feasible measures to improve the per capita disposable income of rural residents.There are at least three co-integration relationships between the fiscal expenditure on supporting agriculture in Henan Province,the per capita disposable income of farmers,the operating income,the wage income,the property income,the transfer income and the income returned by migrant workers.Specifically,the fiscal expenditure on supporting agriculture in Henan Province is the Granger’s factor of the per capita disposable income,the operating income and the transfer income of farmers;Henan’s fiscal expenditure on supporting agriculture has a positive impact on the per capita disposable income,operating income and transfer income of farmers.(3)The contribution of fiscal expenditure on supporting agriculture in Henan Province to the per capita disposable income of farmers is volatile,which may be related to factors such as insufficient initial investment,many intermediate links or slow transformation process.The contribution of fiscal expenditure on supporting agriculture in Henan Province to the operational income and transfer income of farmers shows a gradual and stable growth trend,It shows that the fiscal expenditure for supporting agriculture in Henan Province can effectively promote the growth of farmers’ operational income and transfer income.The promotion of property income and wage income in the per capita disposable income structure of farmers in Henan Province is not obvious.Based on the above analysis results,this paper believes that Henan Province should establish a growth mechanism of fiscal expenditure on agriculture,optimize the structure of fiscal expenditure on agriculture,and better play a positive role in promoting farmers’ income.