ABSTRACT

Without effective control on public spending, political leaders are unclear whether public monies are efficiently used and allocated in accordance with government priorities. Ensuring fiscal discipline and administrative honesty is diffi-cult. This chapter portrays the contour of the measures of the Chinese government aimed at bridging the information gap over spending control. Such measures address how to increase the incentive of local officials and department directors to implement the reform and underline the desire of reform leaders to address technical issues rather than tackle the political challenges arising from spending control. Accordingly, the structural weaknesses and bureaucratic politics that have impeded effective control of public spending remain intact.