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Seeking Breakthrough on Active Fiscal Policy from Perspectives of both Theory and Implementation

Gao Peiyong (Institute of Finance and Trade Economics, Chinese Academy of Social Sciences,100836)  
Active fiscal policy can’t continue on just a few minor alterations to that adopted in last five years, rather, some structural adjustments must be made to suit the macro-economic environment and its trend. In short, from theoretical perspective, a new idea of “promoting growth by reform” should be introduced; the same weight should be put on promoting domestic demand and carrying forward the reform. From the implemental perspective, we should reform the traditional public spending structure to include as many as possible fiscal factors into the implementation of the active fiscal policy, such as adjusting the tax system, reforming the social security institution, adjusting rural policies and reforming the tax-charge pattern, etc. Thus, a new fiscal pattern can be achieved to ensure that both public spending and revenue policy be initiated and implemented harmoniously.
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