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Fiscal Rules: Observations from Europe for the People’s Republic of China
It looks at how the PRC and EU both use multi-year fiscal planning, details the EU’s Stability and Growth Pact, and notes its “escape clause” for crises. It explains how PRC revenue collection is centralized although more than two-thirds of public spending is at local level, and shows how adopting adaptable and politically feasible fiscal rules can tackle local government indebtedness and improve public resource allocation.
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