Based on the principle of investment multiplier, this paper analyzes the effect of implementing active fiscal policy and increasing government investment in China and the problems that need to be studied and solved. 1. Although public investment can promote economic development, government investment often leads to overcapacity. Take the investment of 4 trillion yuan in 2009 as an example, yes.

2. Investment can bring multiplier effect, making 2009 a little better temporarily, but it will cause more serious consequences after time passes. Taking the steel industry as an example, 1 1 year and 12 year experienced a serious decline.

The correct approach is that the government should adopt a proactive fiscal policy to encourage private investment.

We will continue to implement a series of policies and measures to promote development, adhere to the principle of expanding domestic demand, intensify the implementation of a proactive fiscal policy, further give play to the role of monetary policy, and comprehensively use various macro-control means. Judging from the current development trend of economic operation and the objective demand of economic operation, the orientation of China's macro policy this year will basically remain the orientation of expansion, and the intensity of expansion may be greater than last year.

Specifically, in recent years, China's macroeconomic policy will mainly reflect the following characteristics: First, this year will still implement an expansionary macroeconomic policy based on a proactive fiscal policy, which is the main feature of China's current macroeconomic policy of expanding demand and starting economic growth. International experience shows that to stimulate economic growth through expansionary fiscal policy, we must maintain sufficient strength and continue to implement it until demand and prosperity rebound obviously. If you don't do enough or give up too early, you will lose all your efforts.

Therefore, the proactive fiscal policy will not be interrupted until the new round of economic growth really starts. In view of the actual situation of economic operation and the objective needs of its development in recent years, China will still implement an expansionary fiscal policy, and the expansion of fiscal policy may be greater than in previous years.

Its main measures will be reflected in the following aspects:

1. Continue to implement last year's policies and measures to adjust residents' income distribution, and will intensify the implementation of this policy, conscientiously and thoroughly implement policies and measures to promote "wage growth" and raise the level of "third-line" social security expenditure;

2. Further increase the export tax rebate rate, and increase the average export tax rebate rate from 15% to the level close to 17%, so as to increase the contribution of exports to economic growth;

We will continue to issue special treasury bonds to expand domestic demand, which may be larger than last year. The investment will focus on infrastructure, equipment investment and technological transformation investment in high-tech industries, as well as investment in some service areas that are in short supply.