Abstract: Since 2011, China’s economy said good bye to the two digit growth, GDP growth is shifting, and economic development has entered a new norm.The imbalanced relationship between supply and demand, weakening demand side management and the subsided traditional power of stimulating economic growth call for the supply side structural reform.This paper describes the theoretical and realistic basis of supply side reform, analyzes the influence of China’s current fiscal policy on reducing the tax burden of enterprises, supporting scientific and technological innovation, and narrowing the income gap and improving the people’s livelihood construction on the role of supply side reform. Finally, the paper puts forward some suggestions on the improvement of the ecological and environmental construction, the circulation tax and income tax design and the livelihood of the people.

Key words: Supply Side Reform, Structural Imbalance, Economic Growth, Finances and Taxation Policies