{
  "title": "Intergovernmental Fiscal Reform in China",
  "publication": "IMF Working Papers, April 13, 2018",
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  "summary": "China is the most decentralized country in the world in terms of expenditures shares, with subnational governments responsible for 85 percent of government spending.",
  "sections": [
    {
      "heading": "Overview and Context",
      "content": "- China is the most decentralized country in the world in terms of expenditures shares, with subnational governments responsible for 85 percent of government spending.\n- Limited revenue autonomy and insufficient intergovernmental transfers have led to large unfunded mandates and a build-up of debt outside the budget.\n- The government has recently announced an ambitious intergovernmental fiscal reform, which will increase the role of the central government.\n- Comprehensive reform is needed to improve public service delivery, increase overall social spending levels and reduce regional disparities.\n- Revenue reforms are necessary to improve efficiency and reduce vulnerabilities from excessive subnational borrowing.\n- These reforms are challenging, but are crucial so that the government can support China’s continued development and prosperity."
    },
    {
      "heading": "Key Findings",
      "content": "- Subnational governments account for 85 percent of government spending.\n- Current arrangements have produced:\n  - Large unfunded mandates.\n  - A build-up of debt outside the budget.\n  - Insufficient intergovernmental transfers.\n  - Limited revenue autonomy at the subnational level.\n- Policy objectives of the announced reform include:\n  - Increasing the role of the central government.\n  - Improving public service delivery.\n  - Increasing overall social spending levels.\n  - Reducing regional disparities.\n  - Improving revenue efficiency and reducing vulnerabilities from excessive subnational borrowing."
    },
    {
      "heading": "Policy Recommendations and Reform Priorities",
      "content": "- Implement comprehensive intergovernmental fiscal reform to:\n  - Rebalance expenditure responsibilities and revenue assignments between central and subnational governments.\n  - Strengthen intergovernmental transfers to address unfunded mandates.\n  - Enhance revenue autonomy where appropriate to improve efficiency.\n  - Contain and reduce off-budget and hidden subnational debt.\n  - Raise social spending levels and improve risk pooling to reduce regional disparities.\n\n---\n\n Content in this bundle\n\n- Intergovernmental Fiscal Reform in China, WP/18/88, April 2018\n  - Intergovernmental Fiscal Reform in China, WP/18/88, April 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Intergovernmental Fiscal Reform in China, WP/18/88, April 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/04/13/intergovernmental-fiscal-reform-in-china-45743"
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    "Authors: Philippe Wingender",
    "Published: April 13, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484351109.001",
    "China is the most decentralized country in the world in terms of expenditures shares, with subnational governments responsible for 85 percent of government spending.",
    "Limited revenue autonomy and insufficient intergovernmental transfers have led to large unfunded mandates and a build-up of debt outside the budget.",
    "The government has recently announced an ambitious intergovernmental fiscal reform, which will increase the role of the central government.",
    "Comprehensive reform is needed to improve public service delivery, increase overall social spending levels and reduce regional disparities.",
    "Revenue reforms are necessary to improve efficiency and reduce vulnerabilities from excessive subnational borrowing.",
    "These reforms are challenging, but are crucial so that the government can support China’s continued development and prosperity.",
    "Subnational governments account for 85 percent of government spending.",
    "Current arrangements have produced:",
    "Policy objectives of the announced reform include:",
    "Implement comprehensive intergovernmental fiscal reform to:",
    "**Intergovernmental Fiscal Reform in China, WP/18/88, April 2018**"
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