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

Datos Bibliográficos

ID6008262
AutoresAn Chen (0000-0002-6275-759X, National University of Singapore, autor de correspondencia), An Chen An Chen (National University of Singapore)
Año2008
Volumen34
Número3
Páginas303-343
Fecha de publicación2008-07-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaModern China (JOURNAL)
Identificadores de la revistaISSN: 0097-7004 • E-ISSN: 1552-6836
EditorialSAGE Publications Inc (PUBLISHER)
DOI10.1177/0097700408315987
OpenAlexW2120699851
IdiomaEN
Citas recibidas17
Referencias 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