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          BIZCHINA> Review & Analysis
          Expanding public finance
          (China Daily)
          Updated: 2006-09-29 10:37

          Such a significant change in the distribution of public finance represents a stark departure from the growth-centred fiscal policy the government had once adopted to facilitate growth of the gross domestic product.

          More than two decades of robust economic growth have greatly added to the country's overall financial strength. Yet, the consequent income and development disparity between regions and groups also left the basic needs of many unfulfilled.

          The fact that not all people have evenly shared the benefits of fast economic growth must not be allowed to stand in the way of establishing an overall well-off society.

          Hence, it is necessary to adjust the priority of the country's fiscal policy. After all, the primary goal of development is not to accumulate wealth for its own sake.

          All the efforts to boost economic growth should ultimately aim for the improvement of people's lives.

          Compared with public spending on productive projects, fiscal support for social facilities may not yield many immediate, direct results for local economic growth.

          But the latter's long-term effect, by improving those enabling conditions of good health and basic education, will far exceed the former.

          Admittedly, a supportive fiscal policy is not the only answer to the existing inequity in the country. But it is a very valued means to ensure more equal opportunities for the development of disadvantaged individuals and regions as well.

          The central government has already made a commendable stride towards people-centred public finance. More transparency should be introduced into local public finance to boost local governments' endeavours to serve the people equally.


          (For more biz stories, please visit Industries)

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