Basic public services and the restructuring of the public finance system in China

Abstract

Purpose The purpose of this paper is to examine the financing and provision of basic public services in China. The main issue addressed is how to reform the public finance system to achieve quality and fairness in the provision of basic public services. Design/methodology/approach Based on an historical analysis of the functional transformation of the public finance system in China and on an empirical analysis of the current public finance system and the public service provision system, a comprehensive understanding was gained about the relationship between the financing and provision of basic public services. Findings The paper argues that there is a close relationship between the provision of basic public services and the functional changes made to the public finance system. Based on a systematic retrospective study of the Chinese Government’s efforts to improve basic public services over the last three decades, this paper offers policy suggestions on further public finance restructuring that would support better service provision. Originality/value By analyzing issues in the public service provision system, this paper contributes to the debate about the efficiency improvement made to governmental functions in China.