Pro-active fiscal policy in China since 1998: backgrounds and its emphases in practice

Abstract

Fiscal policy has made indelible contribution in achieving the sustained, stable, and rapid growth of Chinese economy, especially with the gloom world economy after the slash of the Asian financial and economic turmoil. This paper gives an insight into the external and internal factors that brought about the pro-active fiscal policy in China, and another integral part of this paper is on the emphases measures of the policy and how did they play function. As the points of view in this paper, actually the pro-active fiscal policy is consisted of a set of expansionary fiscal measures, but with the outstanding characteristic of combining short-term adjusting with the medium and long-term restructuring and reform for development.