China’s Fiscal Reforms Need to Help Local Morale, Experts Say
- Beijing should better incentivize local authorities: Feng
- Regional debt risks, strained finances are key economic issues
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China needs to rethink the incentives it gives its local governments to support the economy as top leaders map out their biggest reforms for fiscal policy in a decade, according to government-linked economists.
Upcoming reforms are expected to lay the foundation for the “institutional design of the fiscal regime in the coming 20 to 30 years,” said Feng Qiaobin, a deputy director of the macro economic research of the Development Research Center, at a forum held by Renmin University of China on Sunday. “The key is we must consider how to incentivize local governments.”