Moving from central finance to activating the role of domestic finance: a reading of the experience of financial reform in China during 1957-2020

Abstract

This study focuses on discussing the stages of financial reform in China which started in 1957, and the impact of the financial reform process on the financial relationship between the central and local governments of China, and on the growth of public budget items in China during the reform periods until 2020. We have concluded that there is a large and continuous growth of public expenditures and public revenues, which is due to economic and other financial factors as a result of the applied reform. We also found that the share of local governments in total public expenditures is greater than the share of the central government. Local revenues are fluctuating growth, but in light of the increasing interest in providing local financial resources within the implemented reform plans, it works to meet the needs and provide public services to serve the regions and the economy in general