China's Proactive Fiscal Policy Should Be Gradually "fade Out"

China lias made universally acknowledged remarkable effects since the positive financial policy implemented in 1998.Chian has effectively stimulated consumption demand, compensated the shortfall of investment, spurred economic growth, promoted the optimization and upgrading of economic structure as well as improved resident's living standard. Generally speaking, the positive financial policy has played an essential role in suppressing the economic recession, preventing the deflation and keeping high economic growth rate.Since our country really adopts the anti-recession financial policy for the first time, we haven't completely understood its theoretical foundation and function mechanism. At the same lime, there are very complicated factors causing the economic recession, including total amount factors, structure problems and system obstacles, etc. Therefore, in the course of implementing the positive financial policy, domestic academia has kept disputing such questions as what is a positive financial policy, how is the result of the positive financial policy, whether the financial deficit and the scale of the national debt are too large as well as the implementation deadline of the positive financial policy (sustainable or not ), etc.As is known to all, finance is an old historic category. So briefly reviewing the trace of the development of relevant economic theories from Adam Smith "invisible hand" to Keynes' "intervening in an all-round way", clarifying the function principle, mechanism and means of anti-recession financial policy in theory will help us understand that the Keynesian macroeconomic stability policy is still the theoretical foundation of making our financial policy. Through the analysis of the background and causes of implementing the positive financial policy as well as the appraisal of the positive and negative effects of the positive financial policy, we can see the main content of the positive financial policy. If the overheating of economy caused by investment demand expanding excessively keeps going on. it will bring serious consequences to China's economy. At the same time, continue issuing nationalbonds for construction will cause the financial risk. All these form the reasons why the positive financial policy turns. Therefore, I derive out this center argument that, the positive financial policy should be faded out progressively, I also have deeper understanding about the view which minister Jin Renqing put forward at the financial heads of department and bureau's working conference of some eastern provinces and cities that "the current financial policy should be adjusted, that is implementing the neutral financial policy. The overall macro economy runs Well and, has already gone out of the deflation shadow, China will then adopt the neutralfinancial policy in order to ensure the continuous, healthy and steady development of China economy. " On this basis, this paper puts forward two viewpoints-Which, needs to clear up. First, the change of the financial policy goal doesn't mean not having financial deficit in the future. There are many reasons for the financial deficit, besides the increasing deficit caused by expanding domestic demand, the main reason for which our country has financial deficit for many years is the support to the economic system reform, poor-performed stated-owned enterprises and the inelastic tax system. Considering the current economic development stage, the economic structure which needs some adjustment urgently and the imperfect market system and other reasons, financial deficit can not be eliminated in quite a long time in the future. Second, the change of the financial policy goal doesn't mean that the scale of the national debt issuing in the future will be reduced. The national debt issuing after the positive financial policy not only used for making up the financial deficit, repaying the due debt and for the large-scale infrastructure construction, but, also used for accelerating the development of the western region, increasing the input in rural infrastructure,...