Design and verification of the adjustment plan of Chinese fiscal spending structure during the period of transition — Simulation analysis based on a non-competitive I/O predictive model

Abstract

Currently, China's economy is moving from the take-off period into the transition period, and the objective of fiscal policy also changes from promoting economic growth to stabilizing economic growth and adjusting the economic structure. In order to achieve these objectives, we have established a non-competitive I/O predictive model, by adjusting the existing financial spending program, we also analyzed the impact of implementing a new program on China's total economic output and economic structure. The results show, under the current situation, when adjusting the new fiscal spending program, the government should adopt a different investment strategy, reducing the level of investment on infrastructure, expanding investment on health and education, and rationalizing people's expectation during the course of implementing the new investment program, therefore achieving the parallel development by stabilizing economic growth and optimizing the economic structure.