A Study On The Transformation Of Active Fiscal Policy Under The New Normal

In the course of the development of fiscal policy,China has carried out active fiscal policy twice.In 1998,the government adopted active fiscal policy for the first time in order to fend off the negative impact of the Asian financial crisis.This policy had been implemented for 7 years since 1998,and then it turned into sound fiscal policy in 2005.By the end of 2008,the US subprime mortgage crisis triggered a global financial crisis,in order to stabilize the macro economy,China began to implement a new round of positive fiscal policy,and this policy is still in practice now.Over the years,China's active fiscal policy is based on Keynes' s theory of demand management,and the main idea of this theory is to promote rapid economic recovery in the short time by large scale infrastructure construction.However,the implementation of macroeconomic policy is not static,it must adapt to the specific economic situation.The main contradiction of China's economy has undergone a profound change after many years development,and to stimulate the demand of society blindly will do no good to the growth of economy,but bring a lot of sequela to economic development.This paper demonstrates the necessity and urgency of the transformation of China's active fiscal policy under the new normal from both theory and reality,and emphasizes that the main contradiction of China's economy is not lack of effective demand,but supply and demand mismatch.The focus of macro-control is the supply side rather than the demand side;Then,combined with the structural reform of supply side which proposed by the central government,this paper analyzes the defects of China's active fiscal policy,which mainly include the heavy macro tax burden,lack of support for independent innovation,unable to curb over-capacity problem,insufficient supply of public service about the livelihood,single way to raise financial funds and so on;Last,based on the existing problems,this paper discusses the specific transition path of China's active fiscal policy.