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Township level government budget in dilemma
2014-08-21
By Zhao Shukai, research fellow and vice-director-general of Information Center, DRC
Date: 2004/8/24
Abstract:
It is an analysis based on field survey at the township level in terms of its financial capacity. Five aspects are covered: the financial system at the township level; the revenue, expenditure, wage rates, and fee-to-tax reform at the township level. Under a tax-sharing and contract system, there is a striking split in terms of financial capacity: the poor is very poor, the rich is very rich. However in general, the majority of the administration at this level is under a tight budget constraint with great difference in the structure of revenue sources. In terms of expenditure, the township level finance is a hand-to-mouth budget and there is little expenditure for public utility.?
