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Reforms will "moderately increase" spending responsibilities of
the central government in order to ensure public security and
equality, and local governments will be given authority to
manage some public services in order to better meet local needs,
the announcement said.
China will clarify responsibility for government spending
between national and local governments, and will also reduce
overlapping responsibilities, the State Council said in a notice
published on its website.
"Overlapping central and local government fiscal
responsibilities must be reduced and standardized," the notice
said.
China has been looking to centralize more fiscal powers in order
to streamline spending and revenue collection, especially as
local governments face mounting debt woes and falling tax
revenues.
The country has rolled out a new value added tax system that is
collected centrally, replacing a business tax system that was
collected by local governments.
(Reporting by Elias Glenn and Kevin Yao; Editing by Simon
Cameron-Moore)
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