Chinese Fiscal Revenue Risk In The Process Of The Transformation Of The Mode Of Economic Growth

Since reform and opening up, Chinese economy has a rapid development. In 2010, it surpassed Japan and became the world’s second largest economy after the United States. However, China also pays a heavy price for the rapid economic growth, and it makes people realize that extensive mode of economic growth at the expense of resources and environment is not sustainable. As a result, the transformation of the mode of economic growth becomes the only way to get rid of Chinese current economic predicament. Whereby, fiscal revenue is not only the material basis to promote the transformation of the mode of economic growth but also a major financial obstacle blocking the process of economic transformation. Therefore, exploring fiscal revenue risk in the process of the transformation of the mode of economic growth can provide theoretical basis and corresponding policy reference in the process of economic.Early in 1995, Fifth Plenary Session of the Fourteen reviews and approves "Chinese communist Party Central Committee develops the Ninth Five-Year Plan of national economy and social development and the advice of the vision in 2010", and it clearly puts forwards the realization of the change of economic growth mode from extensive to intensive. In 2003, the central government increases the transformation of the mode of development to the height of the first essence, and it regards the transformation of the mode of economic growth as an important way to implement Scientific Outlook on Development. In 2012, "the key regional’s air pollution prevention and control of the Twelfth Five-year Plan" is enacted. Furthermore, it is the first planning towards comprehensive prevention and control of atmospheric pollution and marks that the work direction of Chinese air pollution prevention and control gradually transfers from the total amount control of pollutant to improve the environment quality. At the same time, Government has also taken a serious of policies and measures to promote the progress of the transformation of the mode of economic growth. These policies and measures regard "energy conservation and emission reduction" as the core, and it involves in many fields like science and technology progress, human capital, financial capital, enterprise reform, industrial structure, regional and circular economy, natural resources and environmental pollution, etc. It has a close relationship with enterprises. The process of implementing policies and measures is the process of conducting the micro enterprise risks to macro risks. Hereby, it mainly analyzes the macro risks of fiscal revenue brought by the policies and measures of the transformation of the mode of economic growth.At present, there are a lot of literature researches towards the relationship between the transformation of the mode of economic growth and the fiscal revenue. In this article, the author’s idea explores the relationship between fiscal revenue and economic growth and regards the policies and measures in the process of transformation of the mode of economic growth as a control variable. Furthermore, it explores the effect of various policies and measures through the theoretical model and empirical test.This paper mainly includes four parts. The first part introduces the research background and research significance of fiscal revenue’s risk towards transformation of the mode of economic growth. Furthermore, it also gives the summary of related references. The second part in this paper explores the related theory of the transformation of the mode of economic growth, fiscal and tax. Later on, it analyzes the conduction path of revenue risk and explores the economic effects of different policy measures through the theoretical model. It empirically tests the results of theory model.This paper concludes the following results through mathematical analysis and empirical inspection. From the aspect of incoming, government departments directly or indirectly restricts and controls the demand and supply of labor and capital to phase out backward production capacity, and achieves the transformation from extensive economic growth to intensive economic growth. However, government’ department has to guarantee the stability of employment and tries to avoid monetary policy. From the aspect of expenditure, government department can stimulate consumption to ease the drop of fiscal revenue risk. At the same time, government department puts forwards corresponding policies and measures from aspects of tax and non-tax. On the one hand, it will improve flow tax system by value added tax expansion and adjust enterprise income tax and personal income tax. On the other hand, it will positively take fiscal measures to phase out backward production capacity.Any policy measures’ implementation requires a process. Indeed, the process is full of many uncertainties from internal and external factors. However, the direction of changing economic growth mode from extensive to intensive is complying with the trend of historical development. Thus, analyzing the fiscal revenue risk of the transformation of the mode of economic growth can provide theoretical guidance for the implementation of the policy. In the meantime, the in-depth thinking and perfection towards the tax system, fiscal decentralization and regional economic contributes to grasp the transformation of the mode of economic growth on the whole. At last, it achieves steady, healthy and sustainable economic development in our country.