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An Analysis about the Fiscal Deficits with Stable Fiscal Policy in China

Peng Zhi-yuan

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Abstract

There is a lot of controversy about the fiscal deficits with the stable fiscal policy in China. Based on the theoretic analysis the author thinks that the fiscal deficits can exist with the stable fiscal poli- cy.The author makes quantitative analysis about the directions of the fiscal policy since the 1998.It is piv- otal that the government revenue growth rate and the government expenditure growth rate are the same as the Potential Growth Rate.

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There is a lot of controversy about the fiscal deficits with the stable fiscal policy in China. Based on the theoretic analysis the author thinks that the fiscal deficits can exist with the stable fiscal poli- cy.The author makes quantitative analysis about the directions of the fiscal policy since the 1998.It is piv- otal that the government revenue growth rate and the government expenditure growth rate are the same as the Potential Growth Rate.

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Available abstract

There is a lot of controversy about the fiscal deficits with the stable fiscal policy in China. Based on the theoretic analysis the author thinks that the fiscal deficits can exist with the stable fiscal poli- cy.The author makes quantitative analysis about the directions of the fiscal policy since the 1998.It is piv- otal that the government revenue growth rate and the government expenditure growth rate are the same as the Potential Growth Rate.

Key concepts: Fiscal policy, Economics, Fiscal imbalance, Fiscal union, China, Government expenditure, Government (linguistics), Revenue

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