IMF Working Papers

Reassessing the Perimeter of Government Accounts in China

Author/Editor:

Rui Mano ; Phil Stokoe

Publication Date:

December 8, 2017

Electronic Access:

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Summary:

China’s official general government accounts do not include off-budget quasi-fiscal spending unlike the IMF’s augmented government accounts. This paper argues that the broader concept of augmented government remains relevant despite recent positive measures to separate off-budget units from the government. In fact, new avenues to finance public infrastructure, such as Special Construction Funds and Government Guided Funds, have emerged and this paper re-defines the perimeter of augmented government to include them. Finally, concrete steps for improving China’s fiscal accounts are put forward. If these steps are taken, the perimeter of general government would expand relative to official statistics but would likely be narrower than where augmented aggregates place it.

Series:

Working Paper No. 2017/272

Subject:

Economic and financial statistics Economic sectors Expenditure Fiscal accounting and reporting Fiscal law Fiscal policy Government finance statistics Public financial management (PFM) Public investment and public-private partnerships (PPP) Public sector