The Research On The Fiscal Policy Of Expanding Domestic Demand

Since the reform and opening up, China’s economic growth rate accelerated. However, the national low consumption and a large number of net-export pattern, which have severely restricted the healthy development of the economy. On the background of China’s market economy have been established, it’s an imperative problem for China’s government to pay attention to which could expand domestic demand and stimulate economic growth through the implementation of fiscal policy.China has begun to implement the fiscal policy for expanding domestic demand and stimulating the consumer demand since1998. But the main targets of the government’s macro-control are governmental investment and non-state investment. The rural tax and fee reform, which carried out in the21^st century, has greatly reduced the peasants’burdens and increased peasants’the income. China’s government has set stimulating the consumer demand as the top goal after the2008financial crisis. However, the effects of these policies aren’t as well as the government expected for some reasons. So far, the low level of consumption, especially the consumer demand is still an important factor which constrains the China’s sustained and rapid economic development. Therefore, it’s of great realistic significance to research the problem of China’s consumer demand.Firstly, this thesis analyzes problem of China’s low consumer demand by comparative analysis on the basis of the China’s present situation. Secondly, the thesis finds that public finance, social security, the structure of consumer demand and consumer credit besides the income, are also the factors which constrain the development of the consumer demand. In addition, the thesis also finds that the unreasonable structure of fiscal expenditure, irrational tax structure are the major reasons for constraining the development of China’s consumer demand through the effects assessment of the three periods of positive-steady-positive fiscal policy Based on the above analysis, this thesis pointed out that China’s government should not only refer the fiscal policy measures of the western countries’market economy, but also take China’s specific national conditions into consideration. Only in these ways, improving the consumer demanding level, expectation and consumption environment, can the fiscal policy promote the national healthy economy and rapid development.All in all, the thesis finds that improving the fiscal policy in consumption ability, consumption forecast and consumption environment are the important measures for expanding China’s consumer demand.