China in the Global Economy

1990-0457 (online)
1815-9575 (print)
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OECD’s series of books analyzing the challenges China is facing as it integrates into the global economy. Topics covered include trade, investment, the economy, environment, governance, and agriculture.

Also available in French, Chinese
Challenges for China's Public Spending

Challenges for China's Public Spending

Toward Greater Effectiveness and Equity You do not have access to this content

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14 Feb 2006
9789264013728 (PDF) ;9789264013711(print)

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The study draws extensively on Chinese government and other sources to provide a detailed and up-to-date picture of the current state of China's public expenditure policies, the main reforms that are being undertaken, and the problems that remain to be resolved. Topics covered: key characteristics of China's budget and recent trends; the allocation of spending; the uneven pattern of fiscal decentralisation; gaps between expenditure needs and fiscal resources for local governments and their consequences.

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Table of Contents

Executive Summary
Chapter 1. Government Spending is Bigger than it Looks: The Need for Greater Transparency and Control
-Much of China's Spending is off the Budget
-Spending Has Grown Rapidly since the Mide-1990s
-Outlays are Highly Decentralised
-Spending Needs to be Carried Out More Effectively and Efficiently
Chapter 2. Where the Money is Going: A Reorientation towards Human Development is Needed
-Spending is Oriented to Physical Capital rather than Human Capital and Social Programmes
-Education and Health Spending are Unequally Distributed
-A Large Share of Expenditure is Allocated to Administration
-Social Security and Welfare Outlays are Growing Rapidly but from a Low Initial Base
-Expenditure on Physical Capital is High
Chapter 3. Getting the Spending to Where it is Most Needed: Reforming Relations among Government Levels
-There are Large Spending Disparities across Regions, especially at the County Level
-China's Complex System of Fiscal Transfers is only Partly Based on Needs
-Estimates Suggest Large Financing Gaps for Sub-National Governments
-Financing Gaps are further Aggravated by Some Other Factors
-Further Reforms are Needed to Improve Intergovernmental Fiscal Relations
Conclusions and Recommendations

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