Study On Fiscal Risks And Guarding In China

Public finance is an important means and economic base for the government to realize its functions. During the economic operation in the transition period of reform of Chinese economic system, public finance shall contribute to and play an important role in deepening of the reform, promotion of development and maintenance of stability. Due to the fact that the conflicts between the new and old systems are getting fiercer, social and public risks are constantly accumulated , which exerts great impacts on safety of public finance itself and the national security and attracts attentions from various departments of the government. Particularly from 1998 to 2003, Chinese government exercised expansive fiscal policies, which caused the amount of Chinese debts to expand sharply and gave a negative impact on the sustainable development of public finance. In addition, there is a possibility of loss and difficultly caused by the defects in the present Chinese financial system and fiscal austerity and various fiscal risks are popping up gradually one after another. The study on fiscal risks has got the attention from different fields. We should know the reality that our country have risk and make appropriate analysis and explanation to the cause of the risk. This will do well for us to make feasible measure to take precautions against and control the fiscal risks.The target that this article studies on is the fiscal risk of our country at present, the cause of the fiscal risks and the guarding measures. On the basis of the domestic and international risks main viewpoints , the analysis of risks is conducted through the four major aspects of the operation of public finance-fiscal revenue, fiscal expenditure, financial deficit and public debts. On the base of analyzing the plenty of the data, we study the risks existing in the present Chinese public finance and draw the conclusion that the fiscal risks with a certain degree exits. Having finished the analysis of the current situation of the fiscal risks, next part analyzes the causes of Chinese fiscal risks in the present day in terms of the economic system, financial system and the conduction of other risks. At last, this article holds that the present fiscal risks in China can only be guarded and eliminated through the system reform and by adopting the measures such as establishing the public financial system, coordinating fiscal policies, perfecting financial management, supporting the reform of State-owned enterprises, setting up a financial market system and improving the social security system.