Reforming China's Public Finances to Sustain Growth

2014 ◽  
Vol 06 (02) ◽  
pp. 71-85
Author(s):  
Shuanglin LIN ◽  
Sarah Y TONG
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Local Government ◽  
Income Inequality ◽  
Government Expenditure ◽  
Public Spending ◽  
Government Debt ◽  
Environmental Problems ◽  
Policy Initiatives ◽  
Taxation System

China's public finance is characterised by a pro-growth taxation system, growth enhancing government expenditure and an expansionary fiscal policy. However, reforms are needed to tackle rising income inequality and worsening social and environmental problems, including more public spending and more progressive taxes. Measures are also needed to resolve rising local government debt. The recently concluded Third Plenum has made these its top priorities and announced various policy initiatives.

scholarly journals Local Government Debt and Municipal Bonds in China: Problems and a Framework of Rules

2014 ◽  
Vol 31 (2) ◽  
pp. 23-53 ◽  
Author(s):  
Xingyuan Feng
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Debt Financing ◽  
Municipal Bonds ◽  
Local Democracy ◽  
Government Bonds ◽  
Fiscal Transparency ◽  
Current State

Local governments in China are facing heavy debt burdens, a low level of fiscal transparency and a lack of constraints by local democracy. Since 2008, local government debts have skyrocketed. This article analyses the current state and features of local government debts and the two kinds of 'quasi municipal bonds' in China—urban investment bonds and local government bonds—along with their problems and risks. It examines the risks connected with local government debts and these bonds from the perspectives of public finance and political economy. It concludes with a discussion of a framework of rules for local government debt financing, especially for the issuance of municipal bonds in China.

Falling Inequality in Latin America: The Role of Fiscal Policy

2020 ◽  
Vol 52 (2) ◽  
pp. 317-341 ◽  
Author(s):  
Judith Clifton ◽  
Daniel Díaz-Fuentes ◽  
Julio Revuelta
Keyword(s):  
Latin America ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Public Spending ◽  
Income Taxes ◽  
Personal Income ◽  
Recent Scholarship ◽  
Social Contributions ◽  
Urban Level

AbstractLatin America is one of the world's only regions to have witnessed a fall in income inequality during the 2000s. This paper evaluates the role fiscal policy played in this change. Recent scholarship has examined this in individual countries; lacking is a regional perspective. We examine the effects of nine fiscal instruments on income inequality in 17 countries between 1990 and 2014. Fiscal policy had a positive – albeit small – effect in reducing income inequality, especially from 2003, working best at the urban level. Public spending on education, personal income taxes and social contributions were especially instrumental in reducing income inequality.

scholarly journals Local Government Debt Control Methods by Regional Chambers of Audit

2018 ◽  
Vol 26 (4) ◽  
pp. 51-63
Author(s):  
Mirosław Legutko
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Control Methods ◽  
The Public ◽  
Paper Cover ◽  
The Individual ◽  
Reporting Data ◽  
Negative Phenomena

The aim of this paper was to evaluate the system of control over local government debt exercised by the Regional Chambers of Audit (RCA) and to present the conclusions and expectations resulting from this assessment both generated by the RCA and applicable to the RCA within the scope of conducted debt audits. The method applied to assess legal regulations included analysis of legislative documents, i.e. primarily the Constitution, the Public Finance Act of 27 August 2009, Act of 7 October 1992 on Regional Chambers of Audit and the Regulation of the Minister of Finance of 28 December 2011 on the detailed manner of classifying debt titles classified as public debt. The analyses contained in this paper cover the period from 2014, when the Individual Debt Ratio defined in art. 243 of the Public Finance Act came into force, until 2018. The presented data and regulations confirm the correct functioning of the extensive control system in this respect. Every year, the number of negative assessments of local government debts decreases. However, it seems necessary to eliminate negative phenomena, such as: extending debt repayment period, use of unlimited types of debt titles and falsification of reporting data. The elimination of these negative phenomena may be achieved through amendments to the currently binding law regulating obtaining funding by local governments.

scholarly journals Inequality in China – Trends, Drivers and Policy Remedies

2018 ◽  
Vol 18 (127) ◽  
Author(s):  
Sonali Jain-Chandra ◽  
Niny Khor ◽  
Rui Mano ◽  
Johanna Schauer ◽  
Philippe Wingender ◽  
...  
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Structural Changes ◽  
Policy Reforms ◽  
Policy Initiatives ◽  
The Past ◽  
Rapid Economic Growth ◽  
The World ◽  
The Future

China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

scholarly journals EFFECTIVENESS OF REGIONAL FISCAL POLICY FOR INFLATION CONTROL IN SERANG CITY

2019 ◽  
Vol 3 (1) ◽  
pp. 1-12
Author(s):  
Reza Septian Pradana
Keyword(s):  
Fiscal Policy ◽  
Local Government ◽  
Government Expenditure ◽  
Negative Influence ◽  
Positive Influence ◽  
Government Revenue ◽  
Local Taxes ◽  
Local Government Expenditure ◽  
Local Fiscal Policy ◽  
Personnel Expenditure

ABSTRAK Penelitian ini bertujuan untuk menganalisis efektivitas kebijakan fiskal daerah yang ditinjau berdasarkan belanja pegawai, belanja barang, dan penerimaan pajak daerah dalam pengendalian inflasi di Kota Serang. Penelitian ini menggunakan analisis regresi linier berganda. Hasil estimasi menunjukkan bahwa belanja pegawai dan belanja barang secara signifikan berpengaruh postif terhadap inflasi sedangkan penerimaan pajak daerah secara signifikan berpengaruh negatif terhadap inflasi. Dengan demikian, pengendalian inflasi di Kota Serang dapat dilakukan dengan pengendalian terhadap pengeluaran pemerintah daerah khususnya belanja pegawai dan belanja barang serta penerimaan pajak daerah.          Kata kunci: belanja barang, belanja pegawai, inflasi, kebijakan fiskal daerah, penerimaan pajak daerah ABSTRACT This study aims to analyze the effectiveness of regional fiscal policy based on personnel expenditure, goods expenditure, and local taxes revenue to control inflation in Serang City. This study uses multiple regression analysis. The result of estimation shows that personnel expenditure and goods expenditure significantly give positive influence to inflation while local taxes revenue significantly give negative influence to inflation. So, The Control of Inflation in Serang City can be done by controlling of local government expenditure especially personnel expenditure and goods expenditure and local government revenue. Keyword: goods expenditure, inflation, local fiscal policy, local taxes revenue, personnel expenditure

ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES

2020 ◽  
pp. 1-48
Author(s):  
George Economides ◽  
Hyun Park ◽  
Apostolis Philippopoulos ◽  
Stelios Sakkas
Keyword(s):  
Public Finance ◽  
Social Security ◽  
Public Debt ◽  
Government Expenditure ◽  
Public Spending ◽  
Olg Model ◽  
Policy Mix ◽  
Education And Health ◽  
Long Run ◽  
Actual Policy

We study the implications of changes in the mix of taxes, public spending, and public finance in the Eurozone. In so doing, we build a general equilibrium OLG model that naturally incorporates all the main categories of public spending and taxes. We focus on the medium- and long-run implications of permanent reforms in the actual policy mix. When we depart from 2008, the best way out of the recession would be an increase in public spending on education and health and in turn cuts in distorting taxes including social security contributions. When we depart from the year 2017, which features a higher inherited public debt, public debt consolidation becomes the superior reform to the extent that the focus is on the medium and long run.

scholarly journals Pengaruh Kekayaan Sumberdaya Alam Batubara Terhadap Ketimpangan Pendapatan di Provinsi Kalimantan Timur

2018 ◽  
Vol 13 (2) ◽  
pp. 111-130
Author(s):  
Ahmad Zaini
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Income Inequality ◽  
Natural Resources ◽  
Agricultural Sector ◽  
Government Expenditure ◽  
Least Square ◽  
East Kalimantan ◽  
Local Government Expenditure

East Kalimantan Province is the largest producer of natural resources in Indonesia. Due to the massive exploitation process and high value, the mining sector has the biggest contribution and thus dominates the economy sector in the region. Related to this conditions, this study aims to describe the effect the effect of coal as natural resource on income inequality in East Kalimantan Province. This study uses panel data from nine districts/municipalities in East Kalimantan during 2006 until 2014, which is then processed by a pooled least square model. The study concludes that the contribution of coal sub-sectors in the economy is positively related to income inequality. The higher the contribution of coal subsector in the economy, the higher the income inequality in East Kalimantan Province. In addition, this study also finds that local government expenditure is not significantly related to income inequality, which means that the local government has not succeeded in creating equal prosperity in that region. However, the economic growth and the contribution of agricultural sector have no significant effect on income inequality.  Keywords: income inequality, natural resources curse,government expenditure. Provinsi Kalimantan Timur merupakan provinsi penghasil sumber daya alam terbesar di Indonesia. Akibat proses eksploitasi yang massive dan nilai yang tinggi, sektor pertambangan sangat mendominasi perekonomian daerah tersebut. Dari sekian banyak sumber daya alam yang ada di Provinsi Kalimantan Timur, batubara adalah yang paling besar kontribusinya terhadap perekonomian. Terkait kondisi tersebut, penelitian ini bertujuan untuk menguji pengaruh kekayaan sumber daya alambatubara terhadap ketimpangan pendapatan di Provinsi Kalimantan Timur. Penelitian ini menggunakan data panel dari sembilan daerah kabupaten/kota di Provinsi Kalimantan Timur selama tahun 2006-2014, yang kemudian diolah menggunakan model pooled least square. Hasil penelitian menyimpulkan bahwa kontribusi subsektor batubara dalam perekonomian berhubungan positif dengan ketimpangan pendapatan. Semakin tinggi kontribusi subsektor batubara dalam perekonomian, semakin tinggi pula ketimpangan pendapatan di Provinsi Kalimantan Timur. Selain itu dalam penelitian ini ditemukan pula bahwa pengeluaran pemerintah berhubungan positifdengan ketimpangan pendapatan, yang berarti pemerintah daerah belum berhasil menciptakan pemerataan kesejahteraan di wilayahnya. Adapun pertumbuhan ekonomi dan kontribusi sektor pertanian dalam perekonomian Provinsi Kalimantan Timur terbukti tidak memiliki pengaruh yang signifikan terhadap ketimpangan pendapatan.  Kata kunci: ketimpangan pendapatan, kutukan sumber daya alam, pengeluaran pemerintah

scholarly journals Influence of fiscal policy on GDP: an empirical study of GCC countries

2020 ◽  
Vol 17 (3) ◽  
pp. 319-331
Author(s):  
Rashid Khalil ◽  
Bilal Ahmad Pandow
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Public Debt ◽  
Government Expenditure ◽  
Debt Management ◽  
Rank Test ◽  
Price Inflation ◽  
Gcc Countries ◽  
Comprehensive Development ◽  
Policy Adjustments

The Gulf Cooperation Council (GCC) countries of late have made considerable attempts to achieve financial consolidation. However, this was limited to cuts in government expenditures. While scholars suggest the need for overall fiscal policy adjustments, countries should pay particular attention to efficient revenue generation and public debt management. In this paper, an attempt has been made to examine public finance of the GCC countries. The study has taken into account four significant components of public finance: public revenue, inflation, government expenditure and public debt. The co-integration rank test using the vector auto-regression method is employed to determine whether the chosen variables play any influential role in the GDP of the GCC economies. The results suggest that the effect of the consumer price inflation, total government revenue, revenue (percent of non-oil), and total government gross debt have a strong influence on the GDP of these economies. Thus, this means that the countries in the GCC region should focus on inflation, revenue, and public debt to have robust, viable and comprehensive development.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

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