Abstract:Analysis indicates that four major expenditures of China governmentally supporting agriculture include the expenditure on rural production, expenditure on rural infrastructure construction, expenditure on three fees of rural scientific and technological construction and expenditure on rural relief and that there is a long-term stability relation between the four expenditures and the Engel’s Coefficient of rural residents. Agricultural basic construction expenditure has most contribution rate to the change of Engel’s Coefficient of rural resident families, however, the effect of scientific and technological investment on improving peasants’ living standard is obvious but the impact of expenditure on rural production and rural relief on the change of Engel’s Coefficient of rural families is relatively small. China should ensure the expenditure on agricultural infrastructure construction, constantly increase the expenditure on three fees of scientific and technological investment in agriculture, raise the use rate of agricultural production of the expenditure and continue to increase the expenditure on rural relief.