@article{LUO2024, 
author = {Meijuan LUO and Xiaobing QIN},
title = {The Allocation of Fiscal Power and the Level of Basic Public Services: An Institutional Explanation},
year = {2024},
journal = {China Public Administration Review},
volume = {6},
number = {2},
pages = {26-53},
keywords = {concurrent appointment system, basic public services, modified CRITIC model, fiscal supervision},
url = {https://www.sciopen.com/article/10.26599/CPAR.2024.9680202},
doi = {10.26599/CPAR.2024.9680202},
abstract = {The level of the provision of basic public services is not only a practical and significant matter that directly impacts the interests of the people but it also serves as a crucial indicator of a nation's governance capacity. As is well known, basic public services are mainly decided by local fiscal expenditures, which are not only contingent upon the financial capacity of the locality but also influenced by the fiscal expenditure preferences of the local government. The preferences for fiscal expenditures are closely related to the distribution of fiscal power. Fiscal power encompasses decision-making power, taxation power, expenditure power, and supervisory power. The party committee holds decision-making power, while the government possesses taxation power and expenditure power. The National People's Congress primarily exercises supervisory power. It is worth noting that a prevalent political phenomenon exists in China whereby the secretary of the local party committee concurrently holds the position of chairperson of the municipal people's congress. This arrangement has the potential to alter the established distribution of financial power. This study, which focuses on prefectural-level cities in China where the municipal party committee secretary also serves as the chairperson of the municipal people's congress, aims to explore the impact of this concurrent appointment system (CAS) on the provision of local basic public services.This study presents the following findings: (1) The CAS has a negative impact on the provision of local basic public services, leading to a decrease in their quality and availability. (2) This impact is particularly pronounced in regions with lower economic levels and higher fiscal constraints prior to the implementation of the new Budget Law. (3) The increasing pressures on local economic development will exacerbate the inhibitory effect of the CAS on basic public services, while the strengthening of financial supervision will mitigate this effect. (4) Additionally, the CAS significantly hinders the provision of basic medical and social security services, basic education services, and infrastructure services, with a delayed impact on the latter two levels of basic public services.This study suggests that in order to improve the level of local basic public services, foster social and economic development, and elevate the level of national governance, it is crucial to steadfastly pursue the path of high-quality development. By setting multi-dimensional development goals, weakening the reliance on local economic development indicators for assessment, enhancing the supervisory role of the National People's Congress, establishing scientifically and reasonably defined benchmarks for basic public services, and implementing rigorous evaluations of the provision of basic public services, it is possible to increase the supply of basic public services in local communities and elevate the level of basic public services.This study provides an institutional perspective to research the variations in the level of local basic public services and adds to the body of knowledge on current state governance.}
}