Guide­line clar­i­fies fis­cal re­spon­si­bil­i­ties

China Daily (USA) - - CHINA -

The State Coun­cil clar­i­fied the fis­cal pow­ers of cen­tral and lo­cal gov­ern­ments in a guide­line is­sued on Wed­nes­day.

It was the lat­est move in an ef­fort to re­form money man­age­ment and en­sure ef­fi­cient de­liv­ery of pub­lic ser­vices.

The guide­line mod­er­ately in­creases the ad­min­is­tra­tive obli­ga­tion of the cen­tral gov­ern­ment and re­duces over­lap with lo­cal gov­ern­ments.

Spend­ing re­spon­si­bil­i­ties will also be more ac­cu­rately dis­trib­uted depend­ing on the na­ture of the pub­lic ser­vices, the State Coun­cil pledged in the guide­line.

It is also con­sid­er­ing brin­ing more pub­lic ser­vices re­lated to re­gional eco­nomic de­vel­op­ment into the hands of up­per lev­els, while pass­ing re­spon­si­bil­ity for cer­tain pub­lic ser­vices to the lo­cal level.

Since re­form and open­ing-up be­gan, the gov­ern­ment has moved away from a highly cen­tral­ized fis­cal man­age­ment sys­tem, in­tro­duc­ing a tax-shar­ing scheme in 1994.

The new guide­line also says pi­lot re­forms will be car­ried out in na­tional de­fense and for­eign af­fairs in 2016, with the aim of achiev­ing break­throughs in ed­u­ca­tion, health­care, en­vi­ron­men­tal pro­tec­tion and pub­lic trans­porta­tion be­tween 2017 and 2018.

China plans to com­plete the re­forms In 2019 and 2020.

The move came as a lack of clar­ity in as­sign­ing re­spon­si­bil­ity to dif­fer­ent lev­els of gov­ern­ment has caused prob­lems, such as widened re­gional dis­par­i­ties, in­creased lo­cal gov­ern­ment debt and in­ef­fi­cient de­liv­ery of pub­lic ser­vices.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.