Public Finance in China : Reform and Growth for a Harmonious Society

Abstract

This publication focuses on public
 finance, development economics, and the Chinese economy. The
 government will focus on the public good aspects of
 education and training-compulsory education and some aspects
 of higher education and training. The publication encourages
 seven reforms including raising government expenditure on
 education to four percent of gross domestic product (GDP),
 and ensuring that all children actually receive nine years
 of basic education. Improving and widening access to medical
 care, especially for the rural population. The target is to
 extend the cooperative medical scheme to 80 percent of the
 rural population from the current coverage rate of just over
 20 percent. China has sufficient fiscal resources to afford
 the level and type of spending commensurate with a
 harmonious society. This reallocation of resources can be
 done only gradually. It must go hand in hand with a better
 specification of roles and functions of the various levels
 of China and stronger mechanisms for accountability, to
 ensure that poorer local governments use the resources given
 to them.