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.
According to the circular from the Supervision and Inspection Office of the General Office of the State Council, the Bazhou government broke the law by issuing non-tax revenue assessment measures, assigning non-tax revenue tasks and launching campaign-style law enforcement. This situation was alarming. As said in the circular, these issues reveal that some local governments “have failed to understand the concept of belt-tightening and remain impetuous to close fiscal gaps through non-tax revenue (especially confiscation and fines) in the context of current economic downward pressure and tight fiscal balance.”
