Editorial: How Government Frugality Can Serve the People

If Chinese governments at all levels continue to tighten its belt, deepen reform, streamline the administrative structure and improve efficiency, the domestic economy will be fueled by endogenous forces, creating high quality growth that is sustainable. Photo: VCG

The large-scale indiscriminate levying of local government fees and fines in Bazhou, North China’s Hebei province, has recently sparked a heated debate. With the central government repeatedly declaring that governments at all levels should continue to practice fiscal frugality in the interests of the people, Bazhou has definitely set a negative example. As China’s economy comes under greater pressure, many local governments are suffering an intensified contradiction between local fiscal revenue and expenditure. However, this does not mean they are entitled to engage in reckless exploitation. In addition to formulating feasible economic policies to stimulate the inherent vitality of economic growth, governments at all levels should adjust their relationship with businesses and residents. Moreover, they should accelerate reforms, further transform government functions, streamline administration, delegate power, and improve efficiency.