2006 China Fiscal Development Report

Author: Research Center for Public Policy, Shanghai University of Finance and Economics
Publisher:
Publish Date: 2006-06-01
Features: How should China adjust its fiscal expenditure structure? How should it progressively deepen reforms in public financial management systems such as departmental budgets, centralized treasury payments, government procurement, and the two-account system? This development report explores these issues, representing the collective wisdom of researchers from the School of Public Economics and Management and the Research Center for Public Policy at Shanghai University of Finance and Economics. The book innovates in its content selection, analyzing the macroeconomic landscape holistically while conducting research on key issues. It emphasizes both fundamental theoretical considerations and empirical research methods to provide practical evidence for policy-making. It organically combines general qualitative analysis with quantitative analysis using econometric models, focusing on policy feasibility while adhering to the fundamental direction of policies. It stresses grounding itself in China's national conditions and pragmatism while drawing lessons from the experiences of developed countries and other transitioning nations through comparative analysis, and proposes corresponding fiscal policy recommendations.
This report comprehensively reviews the evolution of China's fiscal policy and public financial system reforms since 1996. Building on this foundation, it analyzes and judges the direction of fiscal policy and the development of the public financial system during China's "11th Five-Year Plan" period, in line with the plan's recommendations and the inherent laws of China's economic development. The report's main argument is that after nearly a decade of development, public financial system construction has begun to show initial, and the government's use of fiscal policy tools has gradually matured. However, there remains room for improvement in managing the relationship between government and the market. During the "11th Five-Year Plan" period, the public-oriented trend of "people-centered" will be a key theme in fiscal expenditure, while soundness, standardization, and comprehensiveness will guide the further improvement of the revenue system. Innovation, democracy, and efficiency will be the primary goals of deepening fiscal management reforms, and a prudent fiscal policy characterized by "moderation, risk aversion, and fairness" will set the tone for fiscal policy formulation and implementation.
This report comprehensively reviews the evolution of China's fiscal policy and public financial system reforms since 1996. Building on this foundation, it analyzes and judges the direction of fiscal policy and the development of the public financial system during China's "11th Five-Year Plan" period, in line with the plan's recommendations and the inherent laws of China's economic development. The report's main argument is that after nearly a decade of development, public financial system construction has begun to show initial, and the government's use of fiscal policy tools has gradually matured. However, there remains room for improvement in managing the relationship between government and the market. During the "11th Five-Year Plan" period, the public-oriented trend of "people-centered" will be a key theme in fiscal expenditure, while soundness, standardization, and comprehensiveness will guide the further improvement of the revenue system. Innovation, democracy, and efficiency will be the primary goals of deepening fiscal management reforms, and a prudent fiscal policy characterized by "moderation, risk aversion, and fairness" will set the tone for fiscal policy formulation and implementation.