Abstract: This paper carries out an empirical analysis of the economic performance and social performance resulted from the application of the fiscal and tax subsidies from the perspective of sustainable development. The result implicates that fiscal and tax subsidies have no significant effect on the improvement of the economic performance of the enterprises, except that they can improve the corporate liquidity and profitability in a short term, without much influence on the corporate growth. While the social performance is relatively significant, that is to say, the funds of the subsidies are helpful to the enterprises in carrying out their social responsibilities, such as employment increase, environmental protection etc.. Therefore, it is suggested to innovate the use of fiscal and tax subsidies, to detail the items and directions of the subsidy funds, to strengthen the follow-up management and supervision on the funds, and so on, so as to boost the improvement of the performance of the fiscal and tax subsidies.

Key words: sustainable development; fiscal and tax subsidies; economic performance; social performance