Over the past 25 years, the People’s Republic of China has gone through a long period of remarkable growth, lifting millions of people out of poverty. But this focus on growth has come at a cost, particularly in terms of environmental degradation, increasing socioeconomic and spatial inequalities, and the building up of fiscal liabilities at the local government level. Under the High-Quality Growth agenda, the People’s Republic of China seeks to rebalance the economy by addressing those negative side effects, and local governments will have a key role to play in the implementation of that agenda. In this paper, some critical aspects of the fiscal and institutional environment in which local governments operate are analyzed, and proposals are offered for the strengthening of local government finances.
The fiscal risk of local government revenue in the People’s Republic of China
