Wednesday, November 29, 2017
Improvement of fiscal relations in Central China might be limited
ANBOUND
At present, the general direction and thinking of the reform of the financial relations in Central China have been determined. There are those who are more optimistic about this, yet we think the actual implementation may not be so optimistic and the improvement of fiscal relations in Central China might be limited. In the future, local finance should be enriched more and more by means of "incremental adjustment". That is, local finance should be enriched by introducing some new taxes based on local taxes instead of allowing local governments to increase the scale and scope of their share of the "cake".