As the lever of China's government to regulate the economy, financial subsidies play an active role in making up for market defects, regulating supply and demand structure, promoting industrial policies and implementing price reform. Financial subsidies are free subsidies or allowances given to certain specific enterprises, residents or matters by the state finance according to needs. It has distinctive policy, flexibility and timeliness characteristics. Through financial subsidies, the government will transfer part of the unpaid income from the society to some enterprises or residents for free, regulate the material interests of enterprises and residents, and use them well to play an active role in promoting economic development, if use incorrectly, which puts the country on a heavy financial burden. At the same time, China has joined the World Trade Organization. Therefore, in the face of the new domestic and international environment, how to improve the effect of financial subsidies and play an active role in financial subsidies has become an important issue in fiscal and economic work. Based on the research on the current situation of financial subsidies, this paper analyzes the problems of China's financial subsidies and puts forward suggestions for improving China's financial subsidy policy.
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