Abstract
The existing literature shows that the more advanced the nation, the more its government favors its agricultural sector. Using both quantitative and qualitative research methods, this study has put Zhejiang on the comparative map in understanding the effects of economic development on government agricultural policies both locally and regionally. The Zhejiang data have provided strong evidence that structural transformation in rural Zhejiang can positively affect government budgetary activities. Only economic development can enhance agriculture productivity and the rural China's problem. Besides, the data also provide evidence that central policies deeply affect local governments' budget planning.