Supply of Public Goods in Rural Areas and the Burden of Fanners-Discussing Additionally on the Economic Effect of the Exemption Agricultural Tax

Nankai University (Philosophy and Social Sciences) 1:79-85 (2009)
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Abstract

Abolition of agricultural tax is to reduce the burden on farmers is an important measure, however, the statistics and found that the economic effects of this policy is not ideal, at the same time, the financial difficulties of the rural grass-roots government, severely affected the supply of public goods. By building a model of rural public goods supply and the relationship between the peasants and to explore the mechanism can be seen, failure of public goods supply in rural areas and farmers, a heavy burden on the pattern of national economic policy co-existence and modes of supply over a single deflection due. Therefore, the increased implementation of agricultural policy, agriculture feed, the conversion of rural public goods supply model will be to support rural development and reduce the burden on peasants fundamentally a natural choice. To exempt agricultural tax is a very important measure to reduce the burden of the fanners. However, some bad effects emerge at the same time, such as the governments at grass-root level in rural areas fall into financial troubles and are short of supply of public goods. We could find that it is the national economic policies deflection and the single supply model to cause this trouble situation by constructing a model of the relationship between the supply of public goods and the burden of the farmers. Therefore, it is inevitable to reduce fundamentally the burden of the farmers to increase the support for agriculture and to change the model of supply in rural areas

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Xu Zheng
Beijing Normal University

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