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

James L. Chan

Public Money & Management, 2019, vol. 39, issue 1, 64-69

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’.

Date: 2019
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DOI: 10.1080/09540962.2019.1537707

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