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  • Guo Xiaolin
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    Abstract

    China's fiscal reform in 1994 was one in a series of reforms in the state fiscal management system beginning in the late 1970s that changed relationships between the central and local governments in revenue distribution and led to a decentralization of financial power.1 In 1980, the policy of "eating in separate kitchens" [>i>fenzao chifan>/i>] set the central and local revenue and expenditure bases on which quota assignments for local revenue retention/remittance and central subsidies were determined. In 1985, the schemes of "dividing tax types" [>i>huafen shuizhong>/i>] and "setting revenue and expenditure bases" [>i>heding shouzhi>/i>] further specified quota assignments by levels of government. These reforms were mainly intended to stabilize revenue and regulate expenditure at all levels of government and, at the same time, to alleviate the financial burden of the Center and provide incentives for local governments to generate revenue.2 Above all, the reforms were continuous efforts to adjust central-local relations in the distribution of financial resources.

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    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q640375625671815
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    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

    Volume (Year): 29 (1996)
    Issue (Month): 4 (July)
    Pages: 5-13

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    Handle: RePEc:mes:chinec:v:29:y:1996:i:4:p:5-13

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    Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901

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