Research On Chinese Active Fiscal Policy Which Focus On People’s Livelihood Under The Background Of Financial Crisis

The end of2007, with the U.S. financial crisis sweeping the globe, most countriesand regions of the world fell into a severe economic recession, the socialist China alsocannot escape the crisis. After the outbreak of the financial crisis, governments arecontinuing to adopt new rescue measures to strengthen economic intervention andregulation, as an important means of regulating the economy and improving people’slivelihood, fiscal policy has been widely used by Governments. The end of2008,combing international and domestic situation, the Chinese government made a majoradjustment of macroeconomic policies, began to implement the proactive fiscal policyand moderately loose monetary policy in order to recover the economic as soon aspossible, response to the crisis effectively and improve people’s livelihood. The newround of proactive fiscal policy has carried out for about four years, it’s most notablefeature is focusing on people’s livelihood, in these four years, how effective is China’sproactive fiscal policy in on protecting and improving people’s livelihood, whethersuccessfully response to the financial crisis and how far from the aim of true sense of thepeople’s livelihood, it is significant to do researches and analysis on this issue whether inthe theory or practice.Most current researches were based on the Western financial system and moreresearches were focused on the relation between the fiscal policy and economic variables,such as fiscal spending multipliers, crowding-out effect, Ricardo Equivalence Theoremand so on, less on the effect of social and livelihood aspects. This article start from thefive core areas of financial support for the people’s livelihood, examining the effect of theimplementation of the proactive fiscal policy on education, social security, employment,health care, housing security. Through analysis, we found that the proactive fiscal policyhad obvious effect on improving people’s livelihood, expanding people’s livelihoodexpenditure, also played an important role in expanding domestic demand and stableeconomic growth, successfully response to the financial crisis, which prove that thesocialist china cannot escape the crisis, but can successfully response to the crisis.At the same time, there are still some shortcomings in the implementation process.Based on the above analysis, this article has made some thinking on the structure offiscal expenditure; financial transfer payment to promote fair and public services; theperformance evaluation system of fiscal expenditure.