How to reform China's fiscal system?. Issue 1 (2nd January 2020)

• Record Type: Journal Article
• Authors: Lin, Shuanglin
• Is Part Of: China economic journal. Volume 13:Issue 1(2020)
• Page Start: 62
• Page End: 81
• Publication Date: 2020-01-02
• Subjects: Fiscal Revenues and Expenditures -- Social Security -- Government Debt -- Central and Local Government Relationship; H2 -- H5 -- H6 -- H7; Economic development -- China -- Periodicals; China -- Economic conditions -- Periodicals; China -- Economic policy -- Periodicals; 338.900951
• DOI: 10.1080/17538963.2019.1691356
• Languages: English
• ISSNs: 1753-8963

Abstract

ABSTRACT: As the population aging, China's government expenditures, including general fiscal expenditure, healthcare and social security expenditure, will grow more rapidly than government revenues, tending to elevate government debt. Local governments undertake overwhelming 85% of total general fiscal revenue and are responsible for healthcare and social security, and their debt has been growing. Fiscal reforms are imperative, including tax reforms, the structure of government spending reforms, social security reforms, healthcare reforms, local public finance reforms, and central and local government's fiscal relationship reforms. This paper will explore the fiscal challenges China faces and discuss how to reform the fiscal system to cope with these challenges.