China’s budget planners have a history of wildly underestimating revenue growth, usually making actual net spending by the government far less supportive to the economy than originally planned. The proliferation of fines and fees not included in the main government budget, which are starting to rival formal taxation in scale, further undermines the reliability of the government’s fiscal estimates.
This Update is adapted from an article published in today’s China Daily newspaper.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services