Wagner’s Law can describe the relationship between govment expenditures and economic growth.However,its applicability in China remains controversial.In this paper,we first reconstruct two govment expenditure indicators based on the disadvantages of current fiscal expenditure indicators to explain the govment scale and then use these indicators to test the applicability of Wagner’s Law in China.Results showed that data from the indicators could support Wagner’s Law well when considering numerical increases in expenditures from 1989 to 2012.However,in terms of relative size of govment expenditures proportional increases with the model,the test results of current expenditure indicator do not support the applicability of Wagner’s Law in China.At the same time test results with the two kinds of reconstruction of indicators both can support it well.Overall,the empirical results indicate that new expenditure indicators are more appropriate in testing the applicability of Wagner’s Law in China.