Abstract
Many Chinese literatures compared the size and structure of fiscal expenditure between China and the developed countries. However, due to the statistic differentiation, this kind of comparison may not be accurate. Referring to the standard of the International Monetary Fund (IMF) (2001), I measured the size from 2003 to 2012 and the structure in 2012 of China’s full-covered fiscal expenditure. Furthermore, I compared the size of China’s fiscal expenditure with OECD countries. I find - as China is going through the ‘dual-peak’ period, the peak of infrastructure development and social welfare expansion the overall fiscal expenditure share of GDP has risen from around 31% in 2003 to around 37% in 2012. The ratio of infrastructure expenditure to the whole fiscal expenditure is about 39%, while spending on social welfare is only about 41%.
Highlights
Many Chinese literatures compared the size and structure of fiscal expenditure between China and the developed countries
The size of fiscal spending in China over the past decade is more than 30%, and maintained at above 36% in recent years, which is closer to the level of developed countries and the size of the lower expenditure countries. Another thing to note is that the full-covered expenditure fluctuates sharply, mainly because of the ‘four trillion’ stimulating policies, the full-covered fiscal expenditure jumped from the 2008s at about 32% to about 41% in 2009, which gradually declined to 36% to 37% level
The results are as follow: the full-covered fiscal expenditure share of GDP in China has risen from around 31% in 2003 to around 37% in 2012
Summary
Many Chinese literatures compared the size and structure of fiscal expenditure between China and the developed countries. Fiscal expenditure is the foundation and direct reflection of a government to fulfill its functions, its size and structure reflect the scope and focus of a government (Richard and Tommasi 2001). From the history of developed countries, its government functions and the focus of fiscal expenditure vary in different historical periods and gradually stabilized after 1980. Many Chinese literatures compared the size and structure of fiscal expenditure between China and the developed countries and discuss the pitfalls of China’s fiscal policy and government functions. Due to the statistic differentiation, this kind of comparison may not be accurate. This paper will attempt to combine all the available statistical
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
