What is the financial subsidy for benefiting farmers?
Financial subsidies for benefiting the people and farmers are important measures to protect and improve people's livelihood. It is a social welfare fund such as subsistence allowance policy, assistance and support for poor family members, and temporary assistance. Paying these funds to the masses accurately is the most concerned, direct and practical income problem for the masses. The disbursement steps of agricultural subsidy funds generally include application, review, examination and approval, announcement and distribution.
Reasons for choosing financial subsidy expenditure
1, the existence of market inefficiency: in monopolistic industries, such as urban transportation, liquefied gas, hydropower, etc., market prices cannot rationally allocate social resources, and government departments need to implement price control on such companies. Government departments usually implement low-cost policies to provide social security system for the whole society, especially the middle and low classes. Because the low-price policy of government departments will cause the company to lose money and need financial subsidies from government departments, otherwise such companies cannot survive;
2. Provisions of public policy: Market price is a reasonable system for resource allocation, but the market price system can't handle any problems, and some fields can't fully attract the market economic mechanism. In China, the cost of agricultural production is high, and it is difficult to raise the price of agricultural products when the wage level of users is generally low. Therefore, in order to maintain the non-market prices of agricultural products and safeguard the rights and interests of farmers and urban and rural residents, government departments need to use financial subsidies.
3. Needs in the economic transition period: The above subsidies for loss-making enterprises have maintained the emergence of a large number of companies and the employment of employees, and prevented social unrest caused by large-scale closures and layoffs; On the other hand, in the process of changing the price management system from planned price to market price, price subsidy prevents the pressure brought by the sharp increase of consumption level to citizens' daily life, which is conducive to social and economic stability. This has buffered the impact of the transformation between the old and new systems and is conducive to the success of the transformation.
This paper mainly writes about the relevant knowledge points of financial subsidies for benefiting the people and farmers, and the content is for reference only.