The 1994 Tax Reform and Its Impact on China's Rural Fiscal Structure

Dados Bibliográficos

ID6008262
AutoresAn Chen (0000-0002-6275-759X, National University of Singapore, autor correspondente), An Chen An Chen (National University of Singapore)
Ano2008
Volume34
Fascículo3
Páginas303-343
Data de publicação2008-07-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoModern China (JOURNAL)
Identificadores do periódicoISSN: 0097-7004 • E-ISSN: 1552-6836
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/0097700408315987
OpenAlexW2120699851
IdiomaEN
Citações recebidas17
Referências citadas18

This article analyzes the fiscal crisis at the township level and the related worsening of the peasant burden that was predominantly caused by the 1994 tax reform. This reform changed the tax-sharing rules in favor of the central government. The pressure for performance under tighter fiscal constraints drove local officials to replicate the central government's "self-serving" policy and to desperately attempt to balance their budgets at the cost of their subordinate jurisdictions. Located at the bottom of the administrative hierarchy, the township had no subordinate governments to absorb its fiscal losses or contribute to its coffers. Diminished sources of revenue compelled township officials to squeeze the peasants even harder, particularly in the agricultural provinces. While the tax-for-fee reform and the repeal of the agricultural tax eliminated most of the burden on the peasants, the fundamental structural problem with rural finance not only still exists but also is getting worse

Business · Central government · China · Economic policy · Economics · Government (linguistics · Local government · Peasant · Political science · Public economics · Repeal · Revenue · Tax reform · Tax revenue · China's Socioeconomic Reforms and Governance · Finance · Hong Kong and Taiwan Politics · Local Government Finance and Decentralization · Public Administration