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PUBLIC FINANCE AND CHINESE MOD ERNIZATION

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The term "Chinese modernization," also referred to as "Chinese-style modernization" or "Chinese path to modernization," first appeared consistently in the discourse of the Communist Party of China (CPC) in 2021. A year later, President Xi Jinping formally advanced the concept at the 20th CPC National Congress. The concept crystallizes the CPC's decades of governance experience, taking into account China's huge population, common prosperity for all, the pursuit of economic, cultural, and ethical progress as a whole, harmony between humanity and nature, and peaceful development. Studies on Chinese Modernization is a series of ten-plus monographs authored by acclaimed Chinese scholars, aiming to offer an overview of the concept and elaborate on its various manifestations such as values selection, national security, digital economy, innovation-driven development, dual circulation, state governance, man-nature harmony, ideological security, the rule of law, energy transformation, and public finance.<br /><br />Effective institutions and systems of public finance play a critical role in modernizing state governance capacity. Over the years, China has launched reforms to align its fiscal system with its modernization endeavors. These reforms primarily revolve around the tax system and the fiscal relations between central and local governments. In Public Finance and Chinese Modernization, the author presents a comprehensive analysis of various public finance theories, reflects on the most current issues in China’s tax system, explicates the relations between public finance and state capacity, and elucidates China’s tax reforms. The book also discusses how central and local governments can be better incentivized through tax policies and predicts the direction of future reforms.

Public Finance and Chinese Modernization

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Preface

Chapter 1 From Public Goods to Public Order: Starting Point of Public Finance
Chapter 2 Fundamental Framework of Public Finance
Chapter 3 Building a Modern Public Finance System: From the Economy to Society
Chapter 4 Evolution and Reform of Intergovernmental Fisca Relations
Chapter 5 Motivating Central and Local Governments through the Public Finance System
Chapter 6 Building a Transfer Payment System Aligned with the State Governance System
Chapter 7 Evolution and Reform of the Tax System
Chapter 8 Restructuring the Tax System
Chapter 9 Principles and Guidelines for Building a Local Tax System
Chapter 10 Tax Design for Mobilizing Central and Local Governments and the Tax-Sharing Reform

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Public Finance and Chinese Modernization