ABSTRACT

Agriculture accounts for 9 to 12 per cent of China’s total fiscal expenditure. Labour engaged in the construction of farmland water conservation infrastructure contributed 54 per cent of the growth in gross value of agricultural output prior to reform in 1978. Capital inputs at the time were still lower than those made by technical inputs, which stood at 61.3 per cent; but the contribution to the value of agricultural output growth from capital and fertilizer increments reached 44.7 per cent and 53.7 per cent respectively between 1983 and 1987; increases in the multiple-cropping index added about 20 per cent (see Table 5.1). Subsequently, China has been making comprehensive, large-scale investments in water conservancy construction, fertilizer production and utilization, improvements in crop varieties and animal breeds, road transportation and market facility construction. Institutional reform alongside market liberalization has supported all these efforts. In contrast, owing to financial weakness and a comparative lack of macro-development strategies, the agricultural input of African nations accounted for only 5 per cent or so of their fiscal budgets. Added to this, these low budgets have been directed primarily at export-orientated economic crop production rather than food crops that play key roles in food security maintenance. The Chinese example demonstrates that fiscal support for farming and rural areas is the foundation for sustainable agricultural development. China's Agricultural Expenditure and Share https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">

Year

Total Agricultural Expenditure (CNY100 million)

Agricultural GDP (CNY100 million)

Agricultural Expenditure Share of Agricultural GDP (%)

Agricultural Expenditure Share of Total Fiscal Expenditure (%)

1978

151

1027.5

14.7

13.4

1980

150

1371.6

10.9

12.2

1985

154

2564.4

6.0

7.7

1990

308

5062.0

6.1

10.0

1991

348

5342.2

6.5

10.3

1992

376

5866.6

6.4

10.0

1993

440

6963.8

6.3

9.5

1994

533

9572.7

5.6

9.2

1995

575

12135.8

4.7

8.4

1996

700

14015.4

5.0

8.8

1997

766

14441.9

5.3

8.3

1998

1,155

14817.6

7.8

10.7

1999

1,086

14770.0

7.4

8.2

2000

1,232

14944.7

8.2

7.8

2001

1,457

15781.3

9.2

7.7

2002

1,581

16537.0

9.6

7.2

2003

1,754

17381.7

10.1

7.1

2004

2,338

21412.7

10.9

9.7

2005

2,450

23070.4

10.6

7.2

2006

3,173

24737.0

12.8

7.9

Source: China Statistical Yearbook, 2007