China : Managing Public Expenditures for Better Results

Despite its high economic growth, Chinas public expenditure management faces profound challenges: 1) The retrenchment of the Plan puts more of the burden for the macro and microeconomic policy on the budget. 2) Extra-budgetary funds and quasi-fisca...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	Washington, DC 2015
Subjects:	ACCOUNTABILITY ACCOUNTING ACCOUNTS AGGREGATE FISCAL DISCIPLINE AUDITS AUTHORIZATION AUTONOMY BAD DEBT BAD DEBTS BANK FAILURE BANK PROFITS BANK RESTRUCTURING BANKING SYSTEM BONDS BORROWING BUDGET DEFICIT BUDGET DEFICITS BUDGET IMPLEMENTATION BUDGET PROCESS BUDGET SPEECHES BUDGET SYSTEM BUDGETARY EXPENDITURES BUDGETARY FUNDS BUDGETARY REFORMS BUDGETARY RESOURCES BUDGETING CENTRAL GOVERNMENT CIVIL SERVICE COMPETITIVE BIDDING CONSUMER SUBSIDIES CORRUPTION DEBT DECENTRALIZATION DEMOGRAPHICS DRINKING WATER EBF ECONOMIC DEVELOPMENT ECONOMIC STABILITY EMPLOYMENT EQUALIZATION ETHNIC MINORITIES EXPENDITURE EXPENDITURE ASSIGNMENT EXTRABUDGETARY FUNDS FINANCIAL MANAGEMENT FINANCIAL REPORTING FISCAL FISCAL DEFICIT FISCAL POLICY FISCAL RESOURCES FISCAL YEAR FOREIGN TRADE GNP GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT INTERVENTION GOVERNMENT PERFORMANCE GOVERNMENT REFORM GOVERNMENT REVENUES GOVERNMENT SERVICES GOVERNMENT SPENDING GOVERNMENTAL ORGANIZATION HEALTH SERVICES INCOME INCOME DISTRIBUTION INFLATION INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL FISCAL RELATIONS LABOR INPUTS LABOR MARKET LAWS LENDING RATES LEVELS OF GOVERNMENT LEVIES LOAN CLASSIFICATION LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL TAX MACROECONOMIC STABILITY MANAGEMENT INFORMATION SYSTEMS MARKET PRICES MINISTRY OF FINANCE OPERATING EXPENDITURES PBC POLICY MAKERS PROCUREMENT PROFITABILITY PROVISIONING PROVISIONS PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURES PUBLIC GOODS PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SECTOR PERFORMANCE PUBLIC SERVICES PUBLIC SPENDING ROADS SAVINGS SOCIAL SECURITY STATE ADMINISTRATION STATE BANKS STATE PLANNING STATE SECTOR STATE-OWNED ENTERPRISES SURTAXES TAX RATES TAX REFORMS TAXATION TREASURY WAGES WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2015/10/728867/china-managing-public-expenditures-better-results-country-economic-memorandum http://hdl.handle.net/10986/22901

Description
Summary:	Despite its high economic growth, Chinas public expenditure management faces profound challenges: 1) The retrenchment of the Plan puts more of the burden for the macro and microeconomic policy on the budget. 2) Extra-budgetary funds and quasi-fiscal operations of the banking system undermine fiscal discipline, which contributed to the repeated bouts of inflation. 3) Shifting spending to the Governments priorities is slow, and is in part undone during budget implementation. Over time, this could threaten sustainable growth and equitable growth. 4) While overall social indicators are high, regional disparities remain large. Government services seem overstaffed, which could escalate costs if wages continue to rise. To address these challenges, China needs to reform its public expenditure management. Chinas first priority is restoring fiscal discipline - to delineate a clear budget constraint for every line ministry and unit, and break down the sectoral budgets into organizational budgets. To forge a stronger link between the State Councils policy priorities and the budget, China needs to revamp its budget process. The State should focus on articulating the governments strategic priorities, but leave detailed planning for achieving these priorities to line ministries. Decentralized administration can be a major asset for cost-effective service delivery, if accountability for performance is improved.

China : Managing Public Expenditures for Better Results

Similar Items