2. During the period of SARS in 2003, the State Council established the SARS prevention and control headquarters, and the central government set up the SARS prevention and control fund to arrange special funds for the construction of the national disease prevention and control network to improve the capacity of medical institutions. The central government allocated special funds for the construction of the national disease prevention and control network, which played a role in improving the social security system and improving people's living standards.
This great function of finance is embodied in "finance is the material guarantee for establishing and perfecting the social public service system". This move created a peaceful and harmonious living environment for the people and achieved a great victory in the fight against SARS. Specifically, it is a "material guarantee for consolidating state power" and a "material guarantee for realizing fair income distribution, improving social security system and improving people's lives".
3. Fiscal policy refers to the guiding principle of fiscal work stipulated by the state according to the political, economic and social development tasks in a certain period, and the total demand is adjusted through fiscal expenditure and tax policy. Increasing government expenditure can stimulate aggregate demand, thus increasing national income, and vice versa. Taxation is the shrinking force of national income. Therefore, increasing government taxes can curb aggregate demand, thus reducing national income. On the contrary, it will stimulate aggregate demand and increase national income. It is formulated by the state, represents the will and interests of the ruling class, has a distinct class nature, and is restricted by a certain level of development of social productive forces and corresponding economic relations.