ABSTRACT
Since the beginning of 1998, a series of events have emerged in China’s domestic and external economic environment. The major manifestations are: for the very first time since the beginning of reform and opening up, through the fall of price indices, the economy shows signs of deflation. When the world economy was suffering from the fallout of the Asian financial crisis, many countries and regions, particularly in Asia, saw their economic growth rates falling. In order to successfully implement an active fiscal policy; to make it effectively compatible with other macroeconomic adjustment measures to guarantee the recovery of the economic growth rate from a decline to a rise. The major sources of capital should be channeled through various financial institutions such as banks. In general, a large number of public infrastructure projects can be funded by government finance.
