Research on Fiscal Policy for Developing Agriculture Circular Economy in Henan Province

Circular agriculture is a new developing model of farming. Featuring positive externality and the qualities of public facility, it requires favorable financial support for its advancement. This paper proposes a series of concrete measures to promote circular agriculture in accordance with the specific conditions in Henan province. These measures include (1) increasing the government budget in this aspect, (2) setting up a special fund for circular agriculture - based economy, (3) adjusting the allocation of government fiscal expenditure, (4) supporting agriculture in terms of research, education and promotion, and (5) improving the general production and the competitive strength of agriculture products. It is also proposed in this paper that the increasing investment in agriculture, as a way to accelerate sustainable development of rural economy, can be realized through fiscal subsidies. As for those leading companies devoting to organic farming and the R&D of organic food, fiscal interest discount and investing and financing system are the major policies that can be referred to in the process of financing, which need proper direction from the government. All of these measures are expected to work as a theoretical basis for decision - makers of local governments and a reference for corporation development strategies.