Wang Dehua: Is it Said that the Financial Resources of These Places “Support the Whole Country”?

Release time:2018-01-31Author: Wang Dehua

According to calculations, in the five years of the “Twelfth Five-Year Plan” period, there are 9 of the 31 provinces, autonomous regions, and municipalities in China that have “contributed financial resources” to the national finance. The remaining 22 provinces, autonomous regions, and municipalities need a “net subsidy” from the central government. So, does that mean that only the major eastern provinces support the whole country? We usually judge the contribution of this region to the country based on the fiscal revenue data published by various regions, which is inaccurate. Because there is a complicated and sophisticated set of fiscal revenue and distribution system between China’s central government and local governments.In fact, first, the phenomenon that a small number of provinces have a net contribution to the country’s financial resources, and most regions need central subsidies has been normal in Chinese history and has existed since the reform and opening up. Second, the “subsidies” provided by the central government to local governments are originally the responsibility of the state. Third, the degree of financial contribution to the country is not necessarily equal to “the degree of contribution to the country”. Being prepared for danger in times of peace, while the economic development situation is good, we should also see the hidden worries. After specific analysis of specific issues, we should truly manage the day-to-day meticulous management.