Abstract of thesis entitled “The effects of fiscal policy on private consumption in China”, submitted by Zhu Yuchan (M-B2-5610-2) for the degree of Master of Social Sciences in Economics at the University of Macau in July 2014. This study attempts to investigate the changes of private consumption in response to fiscal shocks in China through the linear regression model and the VAR model, while controlling the monetary supply. Fiscal policies being taken in consideration in this paper includes: (1) government expenditure; (2) taxation; (3) transfer payment. Besides, the monetary aggregates are included in this paper as well in order to fully understand the effect of fiscal policy. The sample in this paper turns to annual time series data on 29 mainland Chinese provinces from 1990 to 2012. The conclusion I draw here is consistent with Keynesian theory, which are in favor of the effectiveness of fiscal policy. An expansionary government spending, a cut in taxation or an increase in transfer will lead to an increase in household consumption. Particularly, I find that local government plays a more important role in stimulating private consumption than central government.