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April 11, 2022   
Agriculture and Distribution of National Income

Agriculture,Distribution,National Income


Agriculture accounted for 10.1% of China's GDP in 2011, down 0.1 percentage points from the previous year. The secondary industry took up 46.8%, down 0.1 percentage points; and the tertiary industry 43.1%, up 0.1 percentage points.

1. In the primary distribution of national income, agriculture's contribution to the growth in farmers 5 average per capita net income continued to fall; the proportion of farmers' total net income to GDP continued to slide In 2011, average per capita net income of rural residents was 6,977.30 yuan, an increase of 11.4% in real terms. Average per capita income from household production was 3,222 yuan, an increase of 389.20 yuan. Income from household production accounted for 46.2% of farmers' total average per capital net income, 1.7 percentage points lower than the previous year.

China's total rural population was 656.56 million in 2011 and farmers,total net income amounted to 4,581.02 billion yuan, accounting for 9.7% of the nation's GDP in the year, down 0.3 percentage points from the previous year.

The average per capita disposable income of urban residents stood at 21,809.80 yuan, up 8.4% in real terms. The country's urban population stood at 690.79 million and the total disposable income of urban residents reached 15,066 billion yuan, accounting for 31.9% of the country's GDP, 0.1 percentage points lower than the previous year.

In 2011, rural residents' average per capita income grew faster than that of urban residents. But urban residents' average per capita disposable income was 3.1 times higher than that of their rural counterparts. Urban-rural income gap remained wide. And to increase farmers' earnings remained a long-term onerous task.

2. In the redistribution of national income, the gap between urban and rural areas remained wide in investment. Fiscal support for agriculture increased further, contributing to grain output growth for the eighth consecutive year and to agricultural and rural development In 2011, investment in fixed assets in the whole country totaled 31,102.2 billion yuan, a rise of 11.8% over the previous year. The growth rate was 12 percentage points lower than the previous year. It was the first time since 2009 that growth in investment in fixed assets began to ease. Investment in fixed assets accounted for 66% of the GDP, 3.9 percentage points lower than the previous year. The growth rate was 6.7 percentage points lower than the growth rate of GDP. It was also the first time since 2009 that growth in investment in fixed assets was outpaced by GDP growth.

Of the total investment in fixed assets, 30,193.3 billion yuan was made in urban areas, an increase of 25.1% over the previous year. The growth rate was 0.6 percentage points higher. Total investment in fixed assets in rural areas stood at 908.91 billion yuan, a drop of 2,763.6 billion yuan, or 75.3%. Investment in fixed assets in urban areas was 33.2 times higher than those in rural areas. The gap between urban and rural areas in this respect was extremely imbalanced.

In 2011, the central finances provided 1,049.77 billion yuan in various kinds of expenses in support of agriculture, rural areas and farmers' livelihood, registering a rise of 22.4% from the previous year. Of the expenses, 498.5 billion yuan was for grain production. The central finances provided 140.6 billion yuan as direct subsidies for grain production, comprehensive subsidies for goods used in agricultural production, subsidies for fine seeds (breeds) and subsidies for the purchase of farm machinery. Rewards for major grain-producing counties were increased by a big margin. A total of 23.6 billion yuan was used as rewards for major grain-producing and oilseeds-producing counties. The requirement for local supplementary funds for grain risk funds was scrapped in major grain-producing regions. The central finances allocated 4.4 billion yuan as subsidies and secured 8 billion yuan as local grain risk funds. Subsidies of 9.1 billion yuan for agricultural insurance premiums were disbursed, covering 14 major crop and livestock varieties in all major grain-producing areas.

In 2011,the central finances continued to increase spending on rural infrastructure and on farmers' livelihood, ensuring agricultural output increases and improved livelihood of rural residents.

The CPC Central Committee's Document No. 1 in 2011 stated that 10% of benefits from land transfers should be used for farmland water conservancy and irrigation. Local authorities formulated policies accordingly. In the year, the central finances allocated 181.4 billion yuan for water conservancy and irrigation works, an increase of 20% from the previous year.

Comprehensive agricultural development funds of 27.16 billion yuan were used for the transformation of low- and medium-yielding farmland and the construction of high-standard farmland of 1.619 million hectares.

The central finances set aside 40.3 billion yuan for the construction of rural highways. The funds were tilted toward the western region and poor ethnic areas with small populations and key regions along the country's borders. Investment in poor ethnic areas with small populations and key regions along the country's borders accounted for 52%.

Some 4 billion yuan was allocated as funds for environmental protection in rural areas.

The central finances spent more than 80 billion yuan for the reform of the protection system for funds of rural compulsory education. About 130 million students in rural areas were exempted from tuition and sundry fees and textbook costs. Stipends were provided to 12.28 million boarders from poor families in the central and western regions.

The central finances set aside 80.2 billion yuan as subsidies for the new rural cooperative medical service scheme. Subsidies for this scheme were raised to 200 yuan per person per year.


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