Empirical analysis of public financial expenditure and peasants increase income

From the perspective of public finance expenditure, the peasants increase income was restricted by flowing factors: (1) The backward basic education restricted the improvement of intelligence quality of farmers; (2) The backward traffic environment and market environment made the rural development facing higher development costs; (3) The serious shortage of water conservancy facilities in rural ethnic areas reduced the ability to withstand natural disasters, and made the agricultural production facing bigger risk. From the view of the theory, public finance expenditure effectted on farmers' income by two ways: (1) Improved the health and knowledge level of farmers by the social expenditure, then improved the human capital accumulation, expand capacity and the opportunities and abilities of getting more income for farmers. Meanwhile, provieded the social security for those low income farmers by the redistribution of social expenditure.(2) Promoted the growth of agricultural economy by investing in agriculture, rural infrastructure and agricultural science and technology.The relevant statistics of 1978 to 2009 of China were used to make empirical analysis, the results showed that public finance expenditure had great effects on peasants increase income. Therefore, increase the fiscal support about agriculture is an important way to increase the farmers' income and reduce the differences of urban and rural areas.