ABSTRACT
Speaking of what the proactive fiscal policy has achieved in the last five years, the first coming to mind is a series of proud achievements that the treasury bond investment has made in infrastructure construction and its direct contribution to economic growth. The importance of reform to economic growth can be demonstrated by the institutional economics and Chinese experience. It is noted that the new thought should be carried out on the basis that proactive fiscal policy is implemented with as many fiscal elements as possible. During the transition period, fluctuated tax revenue is quite possible, which is bound to hinder policy making. The tax and fee reform was earlier known as the tax-for-fee reform (TFR). The reason to enact the TFR was that, local governments at all levels charged fees and collected funds from enterprises and residents and spent these fees without prior permission of finance and tax authorities.
