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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Government expenditure

Government expenditure

Chapter:
(p.183) 27 Government expenditure
Source:
The Oxford Companion to the Economics of China
Author(s):

Shuanglin Lin

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199678204.003.0028

Government expenditure plays an important role in promoting economic development and social justice. Based on international standards, China’s government expenditure should also include subsidies to state-owned enterprises and social security expenditure. This chapter examines China’s budgetary and extra-budgetary expenditure, the composition of government budgetary expenditure, and the challenges of government spending. It argues that the Chinese government spends too little on education, healthcare, and scientific development. The public expenditure system has been distorted by unbalanced fiscal responsibilities at different government levels. There is also a lack of transparency of government expenditures.

Keywords:   public finance, national budget, government spending, budgetary expenditures, healthcare, education

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