Positive analysis on economic growth effect of fiscal deficit in China

The theory study shows whether the fiscal deficit has the positive effect to the economic growth is depended on the objective economic condition.At present,the aggregate demand is less than aggregate supply and the economy status appears the deflation.Under this condition,whether the scale of fiscal deficit brought by the positive fiscal policy is moderate or it can promote the economic growth determined the future fiscal policy direction.This paper made a positive analysis on the relation of the fiscal deficit and the economic growth since reform and opening policy executed in China.The aim is to provide a basis for implementing future fiscal policy.