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Study on the Economic Benefit of Fiscal Expenditure for Agriculture in Heilongjiang Province

Author: ZhanChunHong
Tutor: LiangJingXi
School: Harbin University of Science and Technology
Course: Management Science and Engineering
Keywords: Fiscal expenditures for agriculture Economic efficiency Structural efficiency Economies of scale
CLC: F812.8
Type: Master's thesis
Year: 2010
Downloads: 60
Quote: 0
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Abstract


The development of agriculture and rural economy and the improvement of farmers’income has become the focus of current financial work at all levels. One direct way to solve the so-called three rura issue is to provide financial support for agriculture. Since the the development plan for the year 2006-2010, the scale of financial support for agriculture has been expanding. At the same time, the low efficiency of fiscal expenditure for agriculture has become a big problem. Since lack of supervision and examination on the efficiency of the funds, many investments are turn out to be much low-efficient and inefficient. How to improve the efficiency of limited funds becomes the key to improve the current situation of financial expenditures for agriculture. Therefore, it is of great significance to make a systematic research on the operation and efficiency of the fiscal expenditure for agriculture so as to set up an efficient mechanism for the expenditure and consummate the effect of finance on agricultural expenditure.First of all, this dissertation analyses the current situation and the scale variation of the fiscal expenditure for agriculture in Heilongjiang province from the perspective of absolute quantity and relative quantity from 1992 to 2008. Secondly, the research on the economic effects of the fiscal expenditure for agriculture in the system of capital investment on agriculture is carried out, using the multiple linear regression models. These results are as follows: while the fiscal expenditure for agriculture and farmers’input play a positive role in the growth of agricultural econom, while the agricultural loans do little contribution; moreover, the benefits of fiscal expenditure for agricultural lag behind about 3-years. Empirical studies have shown that the economic effect, scale effect and structural efficiency of the fiscal expenditure for agriculture in Heilongjiang province has always been at a low level of stability in the past two decades; and the irrational allocation structure of the fiscal expenditure for agriculture leds to the low effectiveness of the financial expenditure in general.Finally, this dissertation analyses the causes towards the low effectiveness of the financial expenditure in Heilongjiang Province. Possible reasons include: the low proportion of the financial input on agriculture compared to the total financial expenditure, irrational expenditure structure, displacement of the expenditure links, low effectiveness of the expenditure and lack of efficient supervision and management of the agricultural capital. What’s more, some effective measures are introduced in this dissertation such as increasing the strength of fiscal expenditure for agriculture; establish a scientific and effective performance evaluation system for agriculture funds; optimize the financial structure of agricultural inputs; enhancing agricultural expenditure of funds on financial management and supervision, and related legal restraint mechanism.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Rural finance
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