An Analysis Of Performance Of Fiscal And Financial Policies On The Support Of

China’s urban indemnificatory housing policy began in1995, the comfortable housing project, it was generated with the procedure of monetary reform of housing. At the beginning of the policy, indemnificatory housing mainly indicated economically affordable housing, its construction scale once occupied20%of commercial housing, and was listed as the main body of housing supply. However, no matter new commenced area, completed area, or the amount of capital invested, economically affordable housing has never been the main body, on the contrary, after a few years of development, it even started to back up. Till the year2003, the State Council issued "Circular regarding promoting the sustainable and healthy development of the real estate market", the real estate industry was taken as the pillar industry, commodity house was the main body, the construction scale of economically affordable housing was further compressed, in contrast, the ordinary commodity housing obtained a rapid development. On one hand, rising house prices urged developers to commit more money to ordinary commodity housing, and neglected the low-profit indemnificatory housing, facing the high land transfer income resulting from the high house price, local governments preferred to give out as much land to the commercial housing as possible; On the other hand, the house price grew so rapid that surpassed the growth of residents’ income, and low-income residents in particular, thus caused the housing difficulty of these families, and became the focal point which the society paid attention.Since2007, the government has launched a new round of plans regarding indemnificatory housing, and has issued various policies and measures to support its construction. Currently, our country’s indemnificatory housing is mainly comprised of economically affordable housing, low-rent housing, house of "Two Limits", low-rent public housing and squatter settlements. Our large population base, together with the transfer of rural population caused by urbanization, makes the indemnificatory housing supply a difficult task. Facing the demand situation, the central government interpolated the indemnificatory housing plan to the government work report, and to the twelfth five-year plan, in the hope of strengthening the construction of indemnificatory housing, and the construction task will be assigned to the local government.This article bases on the perspective of the supply of indemnificatory housing, takes the financial policy as the object of study, first expounds the theoretical basis of fiscal and financial policies of indemnificatory housing, then introduces and contrasts the international experience, and embarks from our country’s present situation, studies the policy evolution, supply and capital supply and demand with respect to indemnificatory housing, and obtains a preliminary conclusion, that China’s indemnificatory housing is obviously insufficient, and that the gap between capital supply and demand is very large. The article also points out, that through the way of transforming the fiscal subsidies and strengthening financial support, capital supply problems and can be effectively solved and the efficiency of fiscal expenditure can be improved. In the empirical analysis part, this paper takes fiscal and financial policies support of economically applicable room of Jiangsu province as the example, and selects the governmental subsidies and the development loans as independent variables and the new commenced area as the dependent variable, by establishing the error correction model and impulse response function and variance decomposition, and taking low-rent housing as a reference, the paper draws the conclusion that, in order to support the supply of indemnificatory housing, the government should increase its fiscal expenditure and give preferential financial policies on indemnificatory housing. At the same time, fiscal policies and financial policies should be reasonable collocated, for economically applicable rooms and the house of "Two Limits" financial policies should be given priority to, fiscal policies is secondary; for low-rent housing and public rental housing, fiscal policies should be given priority to, financial policies is secondary, so that fiscal policies and financial policies can bring out the best in each other, and provide a stable capital support to increase the supply of indemnificatory housing.