[Abstract] Since 1994, China's fiscal policy has taken the second half of 1998 as the watershed, and implemented a "moderately tight" fiscal policy and a proactive fiscal policy respectively, which fully shows that the macro-control ability of our government is becoming more and more mature. The economic overheating and inflation in 1988, and the subsequent low-speed growth of the national economy in 1989 and 1990, made the decision-making departments realize that the traditional practice of "one hot, one loose, one cold and one tight" must be changed, not only to overheat and cool the economy, but also to ensure the normal development speed of the national economy and prevent the economic operation. Therefore, based on this idea, the central government timely put forward a "moderately tight" fiscal policy, implemented moderate macro-control on the overheated economy, and realized a new trend of economic development of "high growth and low inflation". 1June, 998 16, People's Daily published a signed article "Fiscal Macro-control and Starting Economic Growth", proposing to change the moderately tight fiscal policy, shift to expanding the scale of fiscal borrowing and expenditure, increase investment, stimulate consumption and expand exports, so as to promote national economic growth.

Since the 1990s, with the gradual establishment of the socialist market economic system and the increasingly complicated economic situation at home and abroad, the China Municipal Government has sized up the situation, responded positively, and flexibly used financial policies, monetary policies and other means of economic regulation and control, effectively controlling the fluctuation of economic development and greatly promoting the healthy development of the national economy. Generally speaking, China's fiscal policy since 1994, with the second half of 1998 as the watershed, has implemented a "moderately tight" fiscal policy and a proactive fiscal policy respectively, which fully shows that the China government's macro-control ability is becoming more and more mature.

First, "moderately tight" fiscal policy: to achieve a "soft landing" of economic growth.

(1) Macroeconomic background.

1. Since 1993, China's economy has been overheated. 1992 Comrade Xiaoping put forward the important idea that "development is the last word" when he made a speech during his southern tour. Taking this opportunity, China began to enter a new round of rapid economic growth period, which reversed the low-speed economic growth trend of 1989 and 1990 in one fell swoop, and the national economic development entered a new stage. The new round of economic growth since 1992 has not only made great social and economic achievements, but also brought new problems.

Although the growth rate of GDP (at comparable prices, the same below) is 1992 and 1993, which are 14.2% and 13.5% respectively, it has changed 1989 and 1990. At that time, China was in the process of transforming from a planned economy to a market economy. The double expansion of investment demand and consumption demand aggravated the shortage of commodity supply, which led to the national retail price index rising by 1993 to 1994 respectively, and caused serious inflation. Economic overheating and serious inflation caused by rapid economic growth have become a huge hidden danger of social and economic stability.

2. In order to cope with the overheating of the economy, the central government put forward a "moderately tight" fiscal policy. Although the GDP growth rate of 1994 was 12.6%, slightly lower than that of 1993, the national retail price index was the highest since the reform and opening up, and inflation was serious. To this end, the central economic work conference at that time put curbing inflation at the top of the economic work in this period.

Since the founding of New China, China's economy has been overheated many times. In order to cool the overheating, due to the lack of macro-control experience at that time, the policy of "tightening to the end" was often adopted, which made the economy fall from overheating to supercooling. This hot-cold conversion seems to be a sudden stop in fast driving, and the economic overheating has been eliminated, but it is also facing the problem of how to start the economy. Hot and cold caused serious economic fluctuations, which had a very adverse impact on the operation of the national economy. The economic overheating and inflation in 1988, and the subsequent low-speed growth of the national economy in 1989 and 1990, made the decision-making departments realize that the traditional practice of "one hot, one loose, one cold and one tight" must be changed, not only to overheat and cool the economy, but also to ensure the normal development speed of the national economy and prevent the economic operation. Therefore, based on this idea, the central government timely put forward a "moderately tight" fiscal policy, implemented moderate macro-control on the overheated economy, and realized a new trend of economic development of "high growth and low inflation".

(B) the connotation of "moderately tight" fiscal policy.

1. target.

(1) Curbing inflation is the primary goal. Under the condition of market economy, moderate price stability is the basis of social and economic activities and the main symbol of sustained and stable growth of the national economy. The high inflation rates in China 1993 and 1994 are not only the peaks since the reform and opening up, but also rare in the world. Such a high inflation rate has caused a serious impact on the national economy and is quite harmful to the country, enterprises and individual urban and rural residents, which has been verified by the practice of all countries in the world. In the transition stage of economic system, the pressure of inflation exists objectively, but if it is left unchecked, it will inevitably destroy the normal economic order and eventually lead to the decline or stagnation of economic growth. Therefore, curbing hyperinflation became a top priority at that time.

(2) Maintaining moderate growth of the national economy is another important goal. For a long time in the past, although China has made considerable achievements in curbing inflation, the price is often that the subsequent national economy is running in a trough. Practice has proved that this "sudden braking" of overheated economy is not conducive to the sustained and coordinated development of the national economy.

During the period of 1988, in order to curb the serious inflation, China adopted severe austerity measures in fiscal policy. Although the inflation rate has dropped significantly, the price paid for this is that the national economy has been depressed for two consecutive years, resulting in the GDP growth rate of 1989 and 199O of only 4. 1% and 3.8%. Since the reform and opening up, maintaining the moderate growth of the national economy has been the core content of China's macro-control and the necessary condition for China's economic take-off. Curbing inflation cannot be at the expense of the growth rate of the national economy. In view of this, while curbing inflation, we must also maintain a moderate growth of the national economy, which is another important goal of the "moderately tight" fiscal policy.

2. The main contents of the policy. In order to curb economic overheating, in the second half of 1993, the central government decisively issued a package of macro-control measures aimed at the excessive growth of fixed assets investment, the core of which is to adopt a moderately tight fiscal policy and cooperate with a moderately tight monetary policy. In terms of fiscal policy, control the scale of expenditure and reduce the fiscal deficit, and reduce the growth rate of fiscal expenditure from 24. L% and 24.8% are in 1993 and 1994 to 1995 and 1996. Clean up and rectify the financial credit working capital, and reduce the investment of financial credit funds in production enterprises. In addition, in 1994, the tax system reform and tax-sharing financial system reform adapted to the socialist market economy were implemented, which increased the "two proportions" of fiscal revenue and provided financial guarantee for the central government to implement macro-control. 75% of consumption tax and value-added tax directly related to speed and scale were regarded as the fixed income of the central government, while income tax directly related to the level of economic benefits was regarded as the local fixed income, thus limiting the local one-sided pursuit of growth.

3. Policy characteristics.

(1) The focus is on the "soft landing" of economic growth. "Moderately tight" means that in the macro-control of fiscal policy, we should properly grasp the strength of policy implementation, eliminate the violent fluctuations of the economy, and maintain the steady growth of the economy, that is, achieve a "soft landing" of economic operation. "Soft landing" is an image metaphor for the state of economic operation. In the sense of economics, it means that the operation of the national economy, after a period of excessive expansion, falls back to a moderate growth range under the macro-control of the government. "Moderate growth interval" means that the realization of economic growth is compatible with the bearing capacity of social material resources and financial resources. Too fast or too slow growth without objective social and economic bearing capacity is not a moderate performance. Therefore, "moderate tightening" is to prevent excessive tightening of macro-control, damage economic growth, and is not conducive to deepening reform.

(2) the total amount is tight and the structure is adjusted. Since the mid-1980s, almost all the major economic fluctuations in China have been caused by the expansion of total demand caused by investment expansion. At that time, the socialist market economic system was still in the early stage of establishment, and the impact of the shortage economy was still there. The expansion of total demand brought about by investment expansion was difficult to release in a short time. Therefore, it is necessary to implement a macro-fiscal policy of moderately tight aggregate. It is worth pointing out that a tight fiscal policy does not mean that the absolute amount of fiscal expenditure is reduced, but it is relatively compressed. Here, relative compression has two meanings: first, it means that the growth rate of fiscal expenditure is lower than that of the previous year, for example, the growth rate of fiscal expenditure from 1995 to 1998 is lower than that of 1993 and1994; Second, compared with the growth rate of fiscal revenue, the growth rate of fiscal expenditure has declined. For example, from 1995 to 1997, the growth rate of fiscal expenditure is lower than that of fiscal revenue. On the other hand, we have learned the lesson of falling into a trough when the economy is overheated. On the premise that the total amount is tight, we should adjust the structure in a timely manner, so as to achieve "tightness and liveliness" and avoid "one size fits all". For national key construction projects, infrastructure with the nature of public goods, such as highways. Railway, farmland capital construction and water conservancy facilities, environmental protection projects, etc. For enterprises with market benefits, appropriately increase public capital investment and give key support; For the "bubble economy" part, for the low-level redundant construction part, for the simple extension expansion and the low-benefit or even non-benefit part, it is tight. Through the structural adjustment of "moderate tightness and vitality", we will promote the transformation of economic growth mode from extensive to intensive, laying a solid foundation for high-quality economic growth in the future.

(3) Matching with the "moderately tight" monetary policy. Fiscal policy and monetary policy are two major policy tools for the government to implement macro-control, and they are generally used together. 1993' s overheated economy made the central authorities realize that it is necessary to cool the overheated economy and curb serious inflation through fiscal policy and monetary policy. Generally speaking, when the economy is overheated, putting the two gates of money and credit well will have an immediate effect on reducing the total demand. The overheated economy marked by excessive expansion of investment demand provides a stage for the collocation and application of fiscal policy and monetary policy. Therefore, the "moderately tight" fiscal and monetary policy plays a role in the following three aspects: first, strictly control fiscal expenditure, especially wage expenditure and social group consumption, and control the growth momentum of fiscal expenditure by adjusting expenditure structure and rationally arranging expenditure; Second, strictly control the total amount of credit, rationally adjust the investment of credit funds, strictly control fixed assets loans, and prohibit the use of working capital for fixed assets investment; Third, while controlling the scale of investment in fixed assets, we should intensify the adjustment of investment structure, focusing on strictly controlling new forms of projects, intensifying technological transformation of enterprises, and ensuring production, completion and national priorities with investment funds. Generally speaking, the combination of fiscal policy and monetary policy has successfully overheated the economy and curbed high inflation.

(3) Implementation effect.

1. Achieve a "soft landing" of economic growth. After 1993, the government implemented a "moderately tight" fiscal policy, and began to curb serious inflation from 1995. The national retail price index dropped by 6.9 percentage points over the previous year, while the GDP still maintained a relatively high growth of 10.5% in the same period; By the first year of the Ninth Five-Year Plan, namely 1996, after three years of rectification, China basically achieved a "soft landing" of the national economy. The national retail price index dropped to 6. L%, but still maintained a 9.6% economic growth rate, the economic environment has improved significantly, and the quality of economic growth has improved significantly, achieving a good trend of both curbing inflation and maintaining sustained economic growth.

2. Accumulated rich experience in managing economic overheating. Using fiscal policy to carry out macro-control is an important embodiment of fiscal function under the condition of market economy. Since 1993, the fiscal policy of "moderate tightening" has been made according to the needs of reform and development. Through the coordination of fiscal policy and monetary policy, serious inflation has been controlled, the phenomenon of "sudden braking" in economic development has been avoided, the "soft landing" of economic growth has been successfully realized, and the national economy has maintained a healthy development. This is a successful example of macro-control by economic means, which has changed the traditional practice of controlling the national economy by administrative means in the planned economy era, jumped out of the framework of macro-control under the planned economy, and effectively solved the macro-control problems that have been bothering us in the past. This is the first time since the founding of New China, and it is an important event in the history of China's macro-control, which has accumulated valuable experience for controlling inflation under the conditions of market economy.