Fiscal Policy Research On China’s Economic Kinetic Energy Conversion

After a long period of rapid economic growth,China has grown to become the second largest economy in the world.The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes.The inherent economic development model is facing unprecedented risks and challenges.How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history.In October 2015,General Secretary Xi Jinping first mentioned new and old kinetic energy when interviewed by Reuters.Since then,new and old kinetic energy began to appear in the speech of state leaders and was repeatedly mentioned.The transformation of old and new kinetic energy in economy is the innovation of state governance,the innovation of political economy of socialism with Chinese Characteristics,and even the correct and profound judgment of the Central Government on the stage of economic development in our country.This article focuses on the fiscal policy in the conversion of kinetic energy,and elaborates on the conversion of old and new kinetic energy in the economy and how to make the fiscal policy play a better role.The introductory part summarizes relevant research results both at home and abroad,and explains the connotation of the supply-side structural reform,economic kinetic energy,economic traditional kinetic energy and economic kinetic energy transformation.The part of theoretical framework of economic kinetic energy conversion puts forward the theoretical logic and thinking method of economic kinetic energy transformation,from the perspective of labor force structure,capital structure,technological structure and innovation driven;From the internal motivation and external motivation,analyzes the inevitability and feasibility of the conversion of old and new kinetic energy in our country;Holds that the implementation mechanism of combining the long-term,short-term and supply-side and demand-side should be inspected in the process of economic kinetic energy conversion in our country;Analyzes the relationship between fiscal policy and economic kinetic energy conversion,the transmission of fiscal policy,the evolution of policy science,the mechanism of fiscal revenue policy and fiscal expenditure policy.The practice part of the conversion of old and new kinetic energy summarizes the three kinetic energy transformations of our economy since the reform and opening up;From the two sides of demand and supply,the structural features of our economy are analyzed;Combined with the current situation,analyzes the main problems and causes of the new round of economic kinetic energy conversion in our country,and puts forward the ideas and directions for the optimization;Discusses the two Chinese models of "Adam Smith Model" and "Keynes Model" and looks forward to the future economic development trend in our country.The fiscal policy support in the conversion of kinetic energy partsummarizes the seven transitions of China’s fiscal policy since the reform and opening up;Analyzes the challenges facing the fiscal policy of the new era,including the declining growth rate of fiscal revenue,the lower tax elasticity coefficient,the rising demand for fiscal expenditure,the growing rigid expenditure,the larger fiscal deficit,the risk of government debt and the need to improve the control mode,policy "fragmentation" issues and so on;In order to meet the challenges,we must improve from many aspects,including paying attention to the top-level design and reforming the regulation and control of fiscal policy,adjusting and optimizing the structure of fiscal expenditure,gradually resolving the contradiction between offside and absence of finance,and financial support to improve the comprehensive competitiveness of our country.In the part of typical developed countries’ experience part,this article summarizes the experiences of fiscal policy in the developed economies such as the United States,Japan and the European Union,summarizes the different fiscal policies adopted by them in different periods,and sorts out the contents that our country can learn from.Part of the fiscal revenue policy mainly analyzes the relationship between macro tax burden,government consumption and economic growth,the relationship between tax structure and economic growth through the construction of econometric model and puts forward some policy suggestions based on this.The part of the financial expenditure policy mainly analyzes the impact of the investment expenditure policy on the economy in China’s fiscal expenditure policy by constructing the DSGE model;The VAR model is used to analyze the impact of the changes in some key fiscal expenditures such as education expenditures,science and technology expenditures,social security and employment expenditures,energy conservation and environmental protection expenditures on the economy;A two-way fixed-effects model is constructed to analyze the effect of government subsidy expenditures on labor income share.This article hopes to make a detailed analysis of China’s economic kinetic energy conversion and fiscal policy,and sum up and explore the path of China’s economic growth and kinetic energy conversion.In the future,the thinking of our country’s economic development is to achieve efficient economic growth through technological progress and industrial upgrading,to achieve stable economic growth by strengthening supply management and structural adjustment,to firmly establish and implement the five major development concepts,to actively practice the socialist economic thought with Chinese Characteristics in the new era of Xi Jinping.By effectively using macro-economic policies such as fiscal policies,the government can guide,stimulate and constrain economic activities and release more potential and space for promoting economic kinetic energy conversion.The objective of China’s macroeconomic policy should shift from promoting economic growth in the short term to adjusting economic structure and transforming economic development mode in the medium and long term.At present,the main contradiction in our economy is not the lack of effective demand,but the mismatch between supply and demand,it is "the contradiction between the ever-growing demand for a better life and an unbalanced development." As one of the important means of macro regulation and control in our country under the new normal,active fiscal policy should change the traditional Keynesian thinking of stimulating effective demand by means of large-scale investment,and turn to increasing effective supply,satisfying effective demand with effective supply and leading new demand with new supply.In view of the existing problems in China’s supply system,active fiscal policy should play an important role in adjusting the balance between supply and demand,reducing the burden on enterprises,enhancing social innovation capacity and increasing the effective supply of public goods and services.China’s economic and social development has entered a new era,the new course of reform and opening up is continuing toward the future.Through continuous and unrelenting efforts and through the formulation of a sound fiscal policies and other macroeconomic policies,we will successfully pass the transition phase of new and old kinetic energy and will surely achieve Chinese Dream of the Great Rejuvenation.