In recent years, economists and policymakers have given much greater attention to fiscal reform in the PRC. This reflects the fact that after the Asian financial crisis the fiscal balance of the PRC government rapidly worsened. Second, the PRC economy as a whole has been moving in a more...

China is the most decentralized country in the world in terms of expenditures shares, with subnational governments responsible for 85 percent of government spending. Limited revenue autonomy and insufficient intergovernmental transfers have led to large unfunded mandates and a build-up of debt...