Through analyzing the present situation of public financial debt scale in China by means of international debt scale indices, this paper explores the causes of its enlargement and advances a policy suggestion of controlling and reducing the current scale of financial debt effectively.

The financial debt in China consists of central financial debt and covert financial debt.

Since 1990s, fiscal deficit and debt scale in our country have increased sharply, which produces great risk in the fiscal system and affects the economic stability and erodes the harmonious development of the national economy.

We describe the dynamic evolution of China s fiscal size with a simple econometric model.

Comparative analysis of the two fiscal size determined mechanism separately conducted during the planned economy and transition period indicates that the differences between the two was mainly resulted from the dramatic change of the basic economy, while the similarity was mainly due to the relative lag of reforming in the political allocation system for resources.