Executive Summary
Introduction
Chapter 1. Government Spending is Bigger than it Looks: The Need for Greater Transparency and Control
-Much of China's Spending is off the Budget
-Spending Has Grown Rapidly since the Mide-1990s
-Outlays are Highly Decentralised
-Spending Needs to be Carried Out More Effectively and Efficiently
Chapter 2. Where the Money is Going: A Reorientation towards Human Development is Needed
-Spending is Oriented to Physical Capital rather than Human Capital and Social Programmes
-Education and Health Spending are Unequally Distributed
-A Large Share of Expenditure is Allocated to Administration
-Social Security and Welfare Outlays are Growing Rapidly but from a Low Initial Base
-Expenditure on Physical Capital is High
Chapter 3. Getting the Spending to Where it is Most Needed: Reforming Relations among Government Levels
-There are Large Spending Disparities across Regions, especially at the County Level
-China's Complex System of Fiscal Transfers is only Partly Based on Needs
-Estimates Suggest Large Financing Gaps for Sub-National Governments
-Financing Gaps are further Aggravated by Some Other Factors
-Further Reforms are Needed to Improve Intergovernmental Fiscal Relations
Conclusions and Recommendations
References