On The Fiscal Policy Support Of Sustainable Economic Development

The macroeconomy of our country has entered from running high to low new rounds of cycles since 1992,and has gone through the fluctuation changes of starting at a high speed , inflation , soft-land moderating , deflation during this time. The macroeconomy changes over to the low-heat from high fever, fluctuating range is relatively great. To the deflation change appearing in macroeconomy from 1997, our country central government adopted expansion fiscal policy specializing in issuing additional national debts to stimulate investment and consumption demand, but the result of the macro economic policies compared with that of economy " softly-landing " before, it is not so obvious. To the strong contrast of the policy result before and after this, we should analyze it from such respects as systems, supply , total demand ,etc..The relation between fiscal policy and economic growth is a problem of both theory and practice. Harrod-Domar model hints that, provided that the capital-output rate "v" does not change, the government can implement the surplus policy of the budget through increasing the tax revenue , thus improve the deposits rate , and then improve guaranteed growth rate. When excess production capacity appears, the government can be through cutting down the competence of levying taxes thus achieving the goal of reducing guaranteed growth rate. Neoclassical model hints that the fiscal policy has short-term effects only, can't influence the long-term economic growth. Endogenous growth theory make economic growth endogenous through overcoming the decreasing returns nature of factor of production that can be accumulated , and through fiscal policy solve such problems as externality of manpower capital accumulation, technological and knowledge ,etc.. So, the government should utilize the fiscal policy to increase public investment in the three fields of infrastructure , manpower capital and researching and developing etc., thus realizing long-term sustainable economic growth. According to macroeconomy operation situation since reform and opening-up, compared with the economic growth rate before economy " softly-landing ", firstly, the trend of easing up appears in the growth rate of the macroeconomy of our country. The reason why the economic growth rate eases up can be judged from the following facts. First in the case of consumption demand, the increasing degree of income of peasants and low-income group of urban people who are our resident subject eases up and even shows a tendency to reduce definitely in recent years. Second, the expansion in urban and rural areas income gap and resident income gap makes residents' average propensity to consume and the marginal propensity to consume drop. Third, the innovation of systems of house, medical treatment, education, etc. makes people's anticipated income reduce and their expected expenditure increase, and it also makes our residents' marginal propensity to consume decline, thus influencing the enlargement of the consumption demand; From the point of view of investment demand, transition because of the macroenvironment of market supply and demand, restriction of systems of property relations and investment and financing system, etc. makes the impulse of investment expansion of both state-owned and non-state-owned investment subject desalinize; In addition, influenced by Asian financial crisis, the demand for exports falls. Our country macroeconomic growth mainly relies on the pulling strength of investment demand (government investment demand plays very important pulling function among them ) in recent years. The investment-dominated economic growth especially pulled by national debt investment for a long time ,which has the character of planned economy, on one hand ,can cause planning system involution, on the other hand, cannot last long and can easily fluctuate violently; Only the economic growth relying on the leading strength of the consumption demand to spur is continual and steady. The theoretical foundation of positive fiscal policy implemented...