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REBALANCING IN CHINA: FISCAL POLICIES FOR SUSTAINABLE GROWTH

EHTISHAM AHMAD

EHTISHAM AHMAD

Grantham Research Institute, London School of Economics, London WC2A 2AE, UK

Pao Yu-Kong Professor, Zhejiang University, P.R. China

E-mail Address: s.e.ahmad@lse.ac.uk

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https://doi.org/10.1142/S0217590817420085Cited by:4 (Source: Crossref)

This article is part of the issue:

Special Issue on Changing Public Finance System: China's Fiscal Reform Towards a Sustainable Economic Development; Guest Editors: Zhikai Wang, Zhejiang University, China and Jinchuan Shi, Zhejiang University, China

Abstract

The 1993/1994 reforms in China created the fiscal space for public investment and rapid growth, based on modern tax instruments (VAT) and administration by offsetting local gainers and losers though the transfer system — and allocation of funds for investment in coastal hubs. Current challenges of congestion, pollution, and growing inequality require the design and financing for new sustainable growth hubs. This will involve an interface between local, national and cross border investments in connectivity under the One Belt One Road Initiative, together with new options for subnational (local) own-taxes, transfers, service delivery and strengthened governance mechanisms to monitor and manage liabilities, including PPPs.

Keywords:

JEL Classification: P2, H1, H2, H4, H7

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