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What is Local Government Fiscal Challenges about?

Local governments in China faced fiscal pressures in the 1990s as rural tax revolts increased due to the growing income gap between rural and urban residents. In response, the central government implemented a tax-for-fee reform policy to abolish all agricultural taxes and fees. This blanket policy was implemented without fine-tuning and led local governments to reduce services as compensation from the central government did not cover counties and townships. As a result, land sales and development became the

Author

bobo987654321

Language

EN