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New development: China renews reform of central–local fiscal relations and provides for basic national public services

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  • James L. Chan

Abstract

China’s reform on central–local fiscal reform has slowed down in recent years. The appointment of a new finance minister experienced in local government affairs is expected to renew the reform affirmed by the Chinese Communist Party (CCP) congress in late 2017. China has unprecedentedly identified a comprehensive list of 81 national basic public services as entitlements. Eighteen of them are subject to national and local standards, and co-financed by central and local governments. A new cost-sharing method for 10 of these services classifies sub-national jurisdictions into five tiers, in which the central government’s share declines from 80% to 10%. These measures, effective in 2019, aim at creating a ‘harmonious and moderately prosperous society’.

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  • James L. Chan, 2019. "New development: China renews reform of central–local fiscal relations and provides for basic national public services," Public Money & Management, Taylor & Francis Journals, vol. 39(1), pages 64-69, January.
    • Handle: RePEc:taf:pubmmg:v:39:y:2019:i:1:p:64-69
    DOI: 10.1080/09540962.2019.1537707
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    Cited by:

    1. Xu, Hongzhang & Pittock, Jamie & Daniell, Katherine, 2022. "‘Sustainability of what, for whom? A critical analysis of Chinese development induced displacement and resettlement (DIDR) programs," Land Use Policy, Elsevier, vol. 115(C).

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