A Study Of Government's Policy For Expanding Consumption Demand Under The Public Finance System

The consumer demand, the investment demand and the demand for foreign trade net export is the Troika of driving economic growth. At present, relative to the investment demand and the demand for foreign trade net export, the contribute rate of the consumer demand to the economic growth is comparatively lower. With the background of the transformation of government functions and the deep reformation of administration system, researches on the relationship between the consumer demand and public finance, how to stimulate and encourage consumption by raising public expenditure, make the consumption a continuous drive of economics an important problem that the government should pay much attention to.Though we have put the policy of stimulating consumer demand into practice and have been taking it as an important macroeconomic control goal from 1997, the under-consumption phenomenon is also a serious problem which restricts the healthy and harmony development of China's economy. Combine with the phenomenon of under-consumption, this article use theories of public finance and consumer demand in both China and other countries to analyze pointedly. We can know the policy of market mechanism and public financial system are not stable in China, but there are much mature and perfect public finance management system in developed market economic countries. So this article compared with the consumption operational aspect and consumption rate diversification of developed countries and contrast analysis some exact dates to prove that there are serious under-consumption phenomenon in our country. Effective consumer demand must affect healthy and harmony development of China's economy. Think over from the economic behavior of our government, there is another very important reason to affect the consumer demand which is the purchasing expenditure and transferring expenditure and there interior structure besides the reason of income redistribution. In the base of former analyses, this article gives out some suggestion that government how to use public finance policy to stimulate consumer demand, and how to keep the positive role of public finance in the healthy and harmony development of China's economy.