Financial Risks Caused By The Fiscal Policy Bias Study

The implementation of fiscal policy is the activities and the government's fiscal policy process made by state's financial institutions and their personnel when they take appropriate means and measures to implement all fiscal policies. The basic situation of the implementation of central policies directly affects the effectiveness of financial management, economic development and even national stability and prosperity. Since the beginning of reform, under the correct leadership of the party, the socialist modernization of china has made a remarkable achievement. China's economic aggregate ranked fifth in the world. All of these can not be separated with the effective fiscal policy. However, it is undeniable that the implementations of fiscal policy by our government have many questions in a period of social transformation, which directly affect the deviation of actual fiscal policy objectives. So, we need to pay more attention to the implementation of fiscal policy. The study of implementation of fiscal policy bias and fiscal risk mechanisms could be engaged as follows:First, fiscal policy has been an important tool for our government to regulate the economy, but there are also a lot of problems, such as the debt problem, too much government intervention in the economy, social security system is flawed, the money-losing state enterprises and so on. These are often caused by the fiscal policy implementation bias that due to various reasons. If these problems can not be solved, they will lead to aggravating financial risks, and make the possibility of the outbreak of the economic crisis intensified.Second, at present, our country is in a crucial period of reform and socialist modernization. In the key process of transformation from the traditional system of planned economy to the market economy, China's economic structure and mode of operation have undergone great changes. Such a huge change is likely to be too sudden for some local governments and departments, which results in the deviations of the implementation of fiscal policy. The bigger the gap is, the greater the risk of China's economy is. This paper will analyzes the main problems of the implementation of fiscal policy, on the base, it will make a further analysis of the reasons of its implementation error, and explore the way to improve the effectiveness of their implementation to ensure the realization of the reform objectives, and ensure the modernization to drive rapidly, healthy and smoothly in order to meet the challenges of Economic globalization and the knowledge economy successfully.Third, there are some fundamental problems of the fiscal policy, which led to the implementation deviation of fiscal policy. In china, the typical examples are our tax system and the system of transfer payments. These two systems make the implementation has faced with the possibility of deviation since the very beginning. For example: too small transfer from central to local; Transfer payment system "Matic effect"; the irregularities in transfer payments and so on. The existence of these problems in the implementation of fiscal policy would cause the same error. Only can we clarify the source of errors can be completely corrected the error.Fourth, the obvious leak of the system of fiscal policy leads to the variance of benefit between local government and central government. When the variance exists, deviation of policy implementation will come in being.Fifth, the topic is significant in realism. The deviation and misplay occurred in the implementation of fiscal policy will lead to great recourse waste, which will block the course of socialist modernization.construction and damage the image of the party and government. While the subsequent fiscal risk will possibly lead to fiscal crisis, even endanger the soundness of country regime. All of these are contravention to the harmonious and economical society we propose this phase. So we must find out the plight of the implementation deviation of fiscal policy, and establish some regulation to lessen and avoid the implementation deviation.