The Role of Local Governments in Driving High-Quality Growth in the People’s Republic of China

Publication | December 2020

This paper analyzes the tax system in the People's Republic of China, focusing on fiscal and institutional operations of local governments. Centralized reforms are recommended to help better manage fiscal liabilities at the local level.

The People’s Republic of China has gone through a long period of remarkable growth, lifting millions of people out of poverty over the past 25 years. Yet, growth has come at a cost, resulting in environmental degradation, increasing socioeconomic and spatial inequalities, and building up of fiscal liabilities at the local government level. Under the High-Quality Growth agenda, the country aims to rebalance the economy in part by implementing tax reforms. This paper emphasizes the key roles that the central and local governments play in the implementation of that agenda.


  • Introduction
  • Antecedents: Developing National Instruments and Policies
  • Addressing the Imbalances in Spending Assignments
  • Subnational Financing of High-Quality Growth
  • Conclusions

Additional Details

  • Economics
  • Governance and public sector management
  • Public financial management
  • Public administration, economic affairs, and policy
  • China, People's Republic of
  • 32
  • 8.5 x 11
  • WPS200400-2

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