Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
For the 2008 period, it may take some time to dig.

But,  for the trend, see here.

Central government spending is divided into two parts: central-level expenditures (中央本级支出), which includes spending by central government ministries and bureaus; and transfer payments/tax refunds (税收返还和转移支付), which includes money reallocated from the central to the provincial authorities (transferred-down payments). For years, the latter has been the dominant part of overall spending. In 2013, money reallocated to provincial authorities accounted for 70.2% of the total budget....

This fiscal arrangement traces its root to the 1994 tax reform, the most monumental fiscal reform of the last 30 years. In the 1980s and early 1990s, tax collection was delegated to local governments, who kept most of the revenues at the local level. Although this system motivated local governments to catalyze regional economic development, it severely weakened the financial capacity of the central government and skewed the balance of power between central and local authorities. In 1994, the central government enacted a radically new policy, requiring that most taxes be collected and kept at the central level. The central government then distributed the revenues to provincial authorities to cover their expenses. In 2012, the transferred-down payments made up 42.6% of all of the revenue of local governments. The post-1994 system engendered made local governments financially dependent on the central government, and turned the tables in the balance of power, as reflected in the previous chart.

So over two thirds of the central government budget is administered at the local level, but those transfers make up only about half of local budgets.  The other half comes from land sales.

China's use of land sales to fund local governments is no longer on such solid ground, according to a top legislator....

"It's getting so bad that if (local governments) don't sell land, they can't even pay salaries," said Mr. Li, a member of the legislature's Standing Committee, a grouping of its senior members.

"How long can this `land fiscal policy' last? Another five years?" he moaned in front of an audience at a financial forum.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Fri Jun 21st, 2013 at 05:29:58 AM EST
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