Research On Risk Management Of Fiscal Deficit

With the spread of the global financial crisis, countries have implemented series of rescue plans which are based on expanding fiscal expenditure, so huge fiscal deficit is inevitable.Fiscal deficit not only reflect the national balance of payments position, but also is the macro and micro economic operation comprehensive reflection of various contradictions, which lead to the risk that affects all aspects of the society and the economy, but currently our country on the fiscal deficit relative lack of awareness of the risks. Based on the comprehensive content of the fiscal deficit and domestic and international risk management theory, the specific situation of China's fiscal deficit and risk management issues, and how to prevent and control it.The article first use of theoretical analysis, from the perspective of macro and micro comprehensive analysis of the fiscal deficit caused by the negative effects on the society and economy, and analysis of fiscal risk primarily obtained through inflation and debt crisis, transmission to other aspects. Next, because our county is lack of experience on the practice of fiscal policy that is a relatively short period of time, so on the basis of theoretical analysis, learn from foreign experience, from a practical point of view to explain the deficit risks and come to a conclusion that the fiscal deficit risks is controllable. This paper mainly use the historical analysis method, combed since its establishment, particularly since 1998 the China's proactive fiscal policy of the historical process and analysis how it was carried out. We can see that our deficit is a certain Chinese characteristic which is the specific historical result of the economic and social situation; our awareness of the risks on the deficit is also progressing, from passive to active deficit and gradually use of the positive effects of the deficit to adjust macro-economy. However, this process produced a series of problems, especially the fiscal deficit measure, caliber, hidden deficits and other issues, the risk of serious impact on the quantification and management of fiscal deficits. Finally the paper proposes the establishment of China's fiscal reform proposals risk management system of government bonds, fiscal revenue and expenditure, institutional innovation decision-making rules to prevent fiscal risks for the macro-economic decision making.