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Problems and Solutions of Financial Funds for Supporting Agriculture

At present, Chinese economy is experienced a changing period, the problem of unbalanced development between urban and rural areas is obvious, and economic in rural areas develops relatively slowly that led to a widening gap between urban an
Submitted On: 04-01-2010 | Views:	Article Tools:

At present, Chinese economy is experienced a changing period, the problem of unbalanced development between urban and rural areas is obvious, and economic in rural areas develops relatively slowly that led to a widening gap between urban and rural areas, and restricts the national economy. This is the main obstacle to the comprehensive development. In this context, the government proposed a great strategy to construct a new countryside, develop the rural economy, improve their living standards, use of various means to change the rural landscape. However, the comprehensive construction of new rural areas is facing many constraints, such as the rural population, the lack of capital, the rural basis is very weak that it needs sufficient funds and technical support, and rural economy was always constrained by natural conditions, on the other hand, because of low productivity of agricultural industrialization capital investment risks and the low return rate, the rural areas can not only rely on the support of marketing means, but also the government. The government has an necessary responsibility for supporting agriculture, in this way, financial support for agriculture should become the main force for the new rural construction.To evaluate the financial status of agriculture, it is easy to see that there are many problems, such as small-scale, fluctuations in expenditure, the deviation of expenditure structure, unstandardized management system. The reality determined that the quality of expenditure management needs to be raised, these factors have a direct impact on the effects of financial support for agricultural, so that the very limited funds for supporting agriculture was inefficient or even was wasted. In conclusion, it is the prominent problems that funds for supporting agriculture performance inefficiently, to improve the effect of financial support funds has a direct practical significance.In this paper, we use empirical measurement of system analysis tools, we evaluate the effect of economic, social and ecological effects of the funds for supporting agriculture based on the comprehensive perspective, and we establish model by using the country and local data for supporting agriculture to evaluate the effect of financial agriculture, and analyze the existing problems.We found that the results were not optimistic about the effect of financial agriculture through empirical testing, the central and local fiscal effects for supporting agriculture is not the same, and there are great differences. On the other hand, it is existed that regional differences in fiscal support for agriculture, the eastern region has a better effects than it in the west. Specific to say, the effects of the central fiscal public management expenditure is more significant , infrastructure costs and technology expenditure is less efficient; the effects of the local fiscal public management expenditure is less obvious , infrastructure costs and technology expenditure is more efficient; the fiscal expenditure for agriculture has a obvious difference between the eastern and the western, the whole effects of eastern fiscal support for agriculture is better than the western. Financial support agriculture's social and ecological effect is not satisfactory yet. Overall, the effects of funds for supporting agriculture should be improved in size, structure, performance, and management , it has many problems as follows: small-scale and big fluctuations, the structure of expenditures deviation, inadequate public goods, the waste of investment and the absence of a serious overrun, the lack of, expenditure management mechanism the significant regional gap and so on. If to improve the effects, we should consider these factors above.To enhance the effect of the funds for supporting agriculture, get the maximize benefit of agricultural expenditure, and comprehensively promoting rural economic, social, cultural, ecological development, we should base on the needs of reality, and gradually explore the effective path of improving the effects of agricultural support. Specifically including the continuing expansion of the scale of fiscal support, establishing the evaluation system for agriculture expenditure, playing a guiding role of agriculture and introduce laws and policies , standardize the management mechanism for supporting agriculture, using many measures, , to improve comprehensively the economic, social , Eco-efficiency of agriculture expenditure. and promoting the harmonious development of rural areas, improving the rural sustainable development, faster and better development.

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