ECON 162 Lecture Notes - Lecture 11: Fiscal Federalism, De Jure, Management System
26 Dec 2018
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Document Summary
China is a de jure unitary state . But china resembles de facto federalism in some aspects. Village is not a formal level of government. 3 fiscal levels in most other large countries. Total revenue = budgetary revenue + extra budgetary revenue + off- budget revenue. Ex: fees collected by public institutions and administrative agencies; contributions to social insurance funds. Bad bank loans: up to 25% of gdp. Recapitalization of asset management companies: 20% of gdp. Comprehensive decentralization from central to local governments. China has always been more decentralized than most other countries in terms of the share of local government expenditure in total. Highly diverse public goods and service provision. Central govt is the principal: wants to. Choose the most important public goods and services. Local government is the agent: wants to. Choose its own public goods and services. Central government has the power but local government is the most efficient collector.
