Central-local budgetary arrangements have undergone numerous changes since the 1960s as the Chinese government in its quest for modernization has sought to balance the needs of central control and local autonomy. During the reform period, the falling tax share of GNP and a commitment to greater...

Finding the proper balance betweeen central control and local autonomy is a perennial problem in the Chinese economy, and the Chinese fiscal system has undergone numerous changes in central-provincial revenue-sharing arrangements since the 1950s. The author examines the impact of recent changes...