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CRN: Government Consumes a Large Percentage of China’s Financial Resources

China Review News (CRN) recently reported that, based on the numbers released by the National Bureau of Statistics, consumer spending contributed 55 percent to the economic growth in the third quarter of this year. However, government operational consumption is also considered part of the final consumer spending. Between 2000 and 2010, the Chinese government’s consumption grew from RMB 1.57 trillion to 5.36 trillion. Government operational spending takes about twenty percent of the annual government income. The same ratio number for the United Sates is 9.9%; it is five percent for the European Union and 2.8 percent for Japan. This indicates that it takes substantially more money to sustain the Chinese government. The statistical data also reflects a lowered quality of consumer spending because the government’s operational consumptions eats a large slice of the “consumer spending” pie.
Source: China Review News, November 3, 2012