Challenges for Chinas Public Spending : Toward Greater Effectiveness and Equity The study draws extensively on Chinese government and other sources to provide a detailed and up to date picture of the current state of Chinas public expenditure policies the main reforms that are being undertaken and the problems that remain to be resolved. Topics covered: key characteristics of Chinas budget and recent trends; the allocation of spending; the uneven pattern of fiscal decentralisation; gaps between expenditure needs and fiscal resources for local governments and their consequences.