China - National Development and Sub-National Finance : A Review of Provincial Expenditures

In China, the highly decentralized fiscal system undermines improvements in policy outcomes and contributes to increasing disparities among its regions. However, rather than re-centralizing, China would benefit from pursuing reforms to: improve expenditure and revenue assignments for the various levels of government; distribute fiscal resources more equally; and improve the use of these resources through better budget management at all levels of government. This report recommends a comprehensive reform effort that covers all the components of the inter-governmental fiscal system, arguing that selective interventions to address specific local financial problems such as defaults on pension and unemployment stipends, and payment arrears on teachers' salaries, have created some pervasive incentives. A piecemeal approach to inter-governmental fiscal reform is unlikely to succeed because it will not take into account the interdependence of transfers on revenue assignments or the role played by expenditure assignments on the adequacy of revenue assignments and transfers.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2002-04-09
Subjects:	ACCOUNTABILITY, ACCOUNTING, ADMINISTRATION REFORM, ADMINISTRATIVE CAPACITIES, ADMINISTRATIVE CAPACITY, AGGREGATE FISCAL DISCIPLINE, AUDITING, AUTHORITY, BASIC EDUCATION, BORROWING, BUDGET EXECUTION, BUDGET MANAGEMENT, BUDGET PROCESS, BUDGET REFORM, BUDGETARY AUTONOMY, BUDGETARY EXPENDITURES, BUDGETARY FUNDS, BUDGETARY INSTITUTIONS, BUDGETARY RESOURCES, BUDGETARY SUPPORT, CENTRAL GOVERNMENT, CENTRAL GOVERNMENTS, CENTRAL TRANSFERS, CIVIL SERVICE, CONSOLIDATION, DEVELOPMENT BANKS, DISTORTED INCENTIVES, EBF, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIES OF SCALE, EQUALIZATION, EXECUTION, EXPENDITURE, EXPENDITURE ASSIGNMENT, EXPENDITURE ASSIGNMENTS, EXPENDITURE RESPONSIBILITIES, FINANCIAL CONTRIBUTION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL TRANSACTIONS, FISCAL, FISCAL DECENTRALIZATION, FISCAL REFORM, FISCAL REFORMS, FISCAL RESOURCES, FISCAL REVENUES, FISCAL YEAR, FOREST MANAGEMENT, GNP, GOVERNMENT AGENCIES, GOVERNMENT EXPENDITURES, GOVERNMENT LEVELS, GOVERNMENT SUBSIDY, GOVERNMENTAL REFORM, GRANT DESIGN, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, HEALTH EXPENDITURES, HEALTH SERVICES, INCOME, INFLATION, INSURANCE, LACK OF AUTONOMY, LAWS, LEGAL REQUIREMENTS, LEVELS OF GOVERNMENT, LOCAL AUTONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENT EXPENDITURES, LOCAL GOVERNMENTS, LOCAL REVENUE, LOCAL TAX, LOCAL TAXES, MANDATES, MARGINAL BENEFITS, MARKET DISCIPLINE, MATCHING GRANTS, MINISTRY OF FINANCE, MUNICIPAL FINANCE, MUNICIPALITIES, NATIONAL EXPENDITURES, NATIONAL GOVERNMENTS, PAYMENT ARREARS, PERVERSE INCENTIVES, POLLUTION, POLLUTION CONTROL, PREFECTURES, PREVENTIVE HEALTH CARE, PRIVATE GOODS, PROVINCIAL GOVERNMENTS, PUBLIC EMPLOYMENT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC GOODS, PUBLIC INVESTMENT, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR PERFORMANCE, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC SPENDING, RATIONALIZATION, RECURRENT EXPENDITURES, REPRESENTATIVES, RESOURCE USE, REVENUE MOBILIZATION, REVENUE SHARING, SAVINGS, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SERVICES, SOCIAL WELFARE, STATE-OWNED ENTERPRISES, STRUCTURE OF GOVERNMENT, TAX ADMINISTRATION, TAX COLLECTION, TAX POLICY, TAX REFORM, TAX REFORMS, TAX REVENUES, TAX SHARING, TAX SYSTEM, TOTAL EXPENDITURES, TRANSITION ECONOMIES, TREASURY, UNEMPLOYMENT, WAGE DIFFERENTIALS, WATERSHED INTERGOVERNMENTAL FISCAL RELATIONS, INTERGOVERNMENTAL TAX RELATIONS, INTERGOVERNMENTAL TRANSFER OF FUNDS, PENSION SYSTEMS, UNEMPLOYMENT INSURANCE, TEACHER SALARIES, PAYMENT OF CHARGES, PAYMENTS ARREARS, GOVERNMENT SPENDING POLICY, VALUE ADDED TAXES, CORPORATE TAXATION, LOCAL GOVERNMENT TAXATION, INCENTIVES, FINANCIAL INCENTIVES, LEGAL REFORM, UNFUNDED MANDATES, TAX ENFORCEMENT, EFFICIENCY, FISCAL EFFICIENCY, DECENTRALIZATION, GOVERNMENT ROLE, CIVIL SERVICE REFORMS, ADMINISTRATIVE STRUCTURE,
Online Access:	http://documents.worldbank.org/curated/en/2002/04/1768217/china-national-development-sub-national-finance-review-provincial-expenditures https://hdl.handle.net/10986/15423
Tags:	Add Tag No Tags, Be the first to tag this record!