CHINAS FISCAL POLICY

To fuel its economic growth China has consistently spent huge

amount of money in developing its infrastructure.
In 1998 to deal with the Asian financial crisis China adopted an
expansionary fiscal policy and issued long term bonds of 910
billion Yuan specially for construction.
Then in 2005, to curb fiscal deficit, it adopted a neutral fiscal
policy
 CONTD.
However in 2008 due to the global financial
crisis china once again adopted an
expansionary policy as Chinas GDP growth
rate fell form 14.2% in 2007 to 9% in 2008.
These measures greatly helped Chinas
economy to get back on track towards
sustainable growth after the global economic
slowdown