Analysis On China’s Fiscal Expenditure And Economic Growth (from1978to2009)

Even if you have not learned economics, you know fiscal policy is an important economic way of government regulation, including two aspects the financial revenue and expenditure. The four goals of macroeconomic include economic growth, full employment and price stability and the balance of international payments, of which economic growth is the core of economic policy goals in most countries. Most economists agree that financial expenditure can promote economic growth; economic growth will also promote the increase of fiscal expenditure. Over the past few years the world economic situation severe, the worldwide economic crisis, countries economic serious affected, including China. And to withstand the economic crisis of the macroeconomic regulation and control policy, fiscal expenditure policy is an important aspect. At present, our economic development will face higher inflation expectations; our current price index caused strong concern from all walks of life. In China the pressure of inflation in a very long period of time will exist. Now our country follows a prudent monetary policy, in order to curb inflation pressure. Therefore, fiscal policy especially fiscal spends policy, more responsibility to promote economic growth of responsibility.Financial expenditure’s affects on economic growth include two aspects:one is financial expenditure scale; another is financial expenditure structure’s influences on economic growth. Financial expenditure amount of economic growth have promote role, but not spending bigger is better, also want to consider the financial expenditure structure. The article analysis can be obtained through an optimal financial expenditure scale, and can come to the spending on the economic growth of the output elasticity. The classification method is the most commonly used according to the function of the fiscal expenditure classification.These article first to domestic and international studies do set up, and then expounds the relevant financial expenditure and the basic problems of the economic growth. Key is the third chapter and chapter four, respectively, analyzes the financial expenditure scale and financial expenditure structure and economic growth, is advanced intuitive trend analysis and empirical analysis. Since1978, China’s fiscal expenditure scale and the financial expenditure structure and the relationship between the economic growths. Conclusion the scale of expenditure of our country to economic growth has obvious role in promoting, best financial expenditure of scale for17percents. Financial expenditure structure, economic construction, social culture and education to economic have significantly positive effects, administrative management, national defense spending are significant adverse effects on the economy. Finally, according to the conclusion of this paper, combining with the current economic situation, proposed the opinions and Suggestions.