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 exp...

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Bibliographic Details
Main Author:	World Bank
Format:	Public Expenditure Review
Language:	English en_US
Published:	Washington, DC 2013
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 http://hdl.handle.net/10986/15423

Description
Summary:	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.

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

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