By Zhao Shukai, research fellow and vice-director-general of Information Center, DRC

Date: 2004/8/24

Abstract:

It is an analysis based on field survey at the township level in terms of its financial capacity. Five aspects are covered: the financial system at the township level; the revenue, expenditure, wage rates, and fee-to-tax reform at the township level. Under a tax-sharing and contract system, there is a striking split in terms of financial capacity: the poor is very poor, the rich is very rich. However in general, the majority of the administration at this level is under a tight budget constraint with great difference in the structure of revenue sources. In terms of expenditure, the township level finance is a hand-to-mouth budget and there is little expenditure for public utility.