Study On Fiscal Policy Of Promoting Transformation Of The Economic Development Pattern

As early as the1990s, how to promote the economic growth pattern from an extensive one to intensive has been proposed as one of the basic guiding rules for economic strategy in China. Premier Wen Jiabao said in the third session of the11th National People’s Congress that it is pressing to change the economic growth pattern in China. It is important to progress Chinese economy into a motivated innovation form as well as the development pattern depending on the inner growth. How to fasten the change of economic growth pace is now the crucial issue in today’s China. Since our reform and opening up, there have been tremendous changes in Chinese economy, including high economy growth rate, improved social system, and high international economic status. However, the high economic growth in China comes at the expense of high investment, high energy consumption and high pollution. With the development of economy, the energy is gradually depleted, and the environment is severely polluted, furthermore, the wage level is relatively low. As the pressure on the world’s energy usage grows, the extensive economic development strategy in China is not sustainable. As a result, it is paramount for China to strategically restructure the economy and modify the global industry governance mechanism.Fastening the pace of change in economic growth is a wise decision made by Ghinese government under a complicated global economic environment. It is an important objective to thoroughly implement the scientific concept of development. It is a deep reform in Chinese social and economic system. It is an important strategy concerning the reform and opening up policy as well as the socialist modernization policy. It is a superior decision that determines the fate of Chinese future development.This article firstly studies the mechanisms on how fiscal policy improves the economic development change. It is made clear that changing the economic growth pattern could guarantee a stable economic growth, equitable income distribution and promotion of full employment. Secondly, this article reviews financial crisis which had exerted huge impacts on the world’s economy and studies how fiscal policies in different countries react to the crisis. There is also a review on Chinese fiscal policy as well as an analysis of the effects of these fiscal policies. Then, there is a discussion on the challenges and obstacles involved in the change of the economic growth pattern in China. It also proposes in this article how to fasten the pace of change in the fiscal policy and mechanism.Fiscal policy is an arrangement of country’s basic economic systems. Promoting the construction and innovation of fiscal policies is an important content to the change of economic growth, which is also an effective tool for improving the change of economic growth. In the12th five year plan proposed in seventh session of the Fifth Plenary Session of the Party, it is clearly proposed that "it is paramount to speed up the tax reform and construct a new taxation system which is good to the change of economic growth." This manifests that taxation reform is a crucial step to the existing change of economic growth in China. Studying the fiscal policy which could speed up the change of economic growth certainly has practical significance. It can not only provide a vision to evaluate the past fiscal policy, but also serves as an actual basis for future reform in fiscal policies in China. Besides, the article theoretically analyses how fiscal reform could improve the change of economic growth, and utilizes econometric models to examine the effects of fiscal policy on change of economic growth. Based on China’s existing economic condition, there is a deep analysis on the potential problems, challenges and obstacles for the change of economic growth and also providing relative fiscal policies to promote our demand structure restructuring, industrial structure restructuring, aspects and technical structures restructuring as well as the opinions on the improvement of the reform of economic development. Finally, this article provides theoretical basis for government’s fiscal policy reform and is quite meaningful for bringing about a thorough and complete fiscal and tax discipline development.The whole article is divided into six chapters and four main parts.Chapter1is Introduction. This part mainly discusses the background and motivation of the article. It also presents a review of the existing researches on relevant topic. The basic research philosophy and methods are discussed in this part. Moreover, there is a discussion on the organization and structure of the article in this part. Finally the main innovations and limitations of the article are illustrated.Chapter2discusses the analysis of the theories on economic development pattern. Firstly, this chapter defines the connotation of the economic development pattern, and then analyzes the significance of our country’s development reform pattern, finally, proposing the main approach to transform the economic development including optimizing the demand structure, optimizing the industrial structure, optimizing the aspects and technical structure. Chapter3discusses the role of fiscal policy in the transformation of the economic development pattern. This chapter begins with analysis on the theoretical basis of the fiscal function in the reform of economic development, and further, it proposes that the fiscal policies are the main tools to promote the reform of economic development. Finally this chapter analyzes the ways, field and methods of the fiscal policy in promoting the transformation of the economic development.Chapter4studies the effects of fiscal policy on the demand structure adjustment. Based on the discussion of the demand structure theories, the chapter analyzes the condition and the problem reasons of our demand structure and also the fiscal arrangement of the demand structure adjustment. Chapter5firstly studies on fiscal policy of adjusting the transformation of the pattern of economic development. And then it analyzes the present conditions of the industrial structure, discussing the problems and their reasons of the industrial structure. Based on the above analysis, this chapter gives its proposals on the fiscal arrangement of the industrial structure adjustment. Chapter6summarizes the fiscal policy on the technological structure adjustment. This chapter firstly discusses the basic theories of the technological structure, and then makes the analysis on their present conditions, discussing the problems and the reasons. Based on the analysis, the chapter makes the conclusions on the fiscal arrangement of the technological structure adjustment.