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Development of the Independent Fiscal Institutions and the Implications on China’s Modern Fiscal Reform(No 30, 2016)

2016-07-28

By Zhang Junwei, Department of Macroeconomic Research, DRC

Research Report, Special Issue, No 30, 2016 (Total NO 1505) 2016-06-30

Abstract: Independent fiscal institutions are something new in the sector of global public financial management. There is no universal definition for them now, but independent fiscal institutions have the following features in common: they are public organizations backed by fiscal funds; they are independent beyond partisan disputes and operate in accordance with professional standards; and they are mainly responsible for fiscal forecasts and policy cost analysis. The Organization for Economic Co-operation and Development (OECD) speaks highly of the independent fiscal institutions, holding that they are one of the most important innovations in the framework of emerging public fiscal management. The OECD also brought up the “Independent Fiscal Institution Code” to promote popularity and regulated development of these organizations. The fresh practice of independent fiscal institutions has revealed that in conducting modern fiscal reform, we should take the supervision by the National People’s Congress as the major task, establish a vibrant fiscal committee, fully tap the institutional potential of the budgetary committee, and advance fiscal planning and reform from the perspective of the government.

Key words: independent fiscal institutions, experience, implications

 
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