Thread Content
Recently, a \"comparison table of GDP flows in major developed countries and China\" that has been circulating online has sparked much discussion. The chart shows that according to data from the United Nations’ Human Development Programme, 70% of China’s economic output is spent on administrative expenses, while in seven countries including the United States, Japan, Germany, and the United Kingdom, such expenses are below 10%. Is the data in this table reliable? Experts from relevant departments said in interviews with reporters that the table confuses many concepts, is full of errors, and is purely fabricated. Is the source of the chart data reliable? Response: It’s unreliable; the United Nations does not have any so-called “Human Development Agency.” The so-called comparison tables rely on fabricated concepts and methods to try and prove that China’s investment in areas such as healthcare, education, science and technology, culture, and the quality of life is significantly lower than that of developed countries, which is a serious distortion of the facts. ”On February 11, Meng Wei, deputy director of the Policy Research Office of the National Development and Reform Commission and spokesperson, said, “This so-called comparison table states that the data comes from the United Nations’ ‘Human Development Programme’, but after repeated verification by my colleagues, no such agency exists among the organizations under the United Nations.” United Nations agencies include the United Nations Development Programme, UN-Habitat, and others; among them, the United Nations Development Programme publishes Human Development Reports and regional reports. ” **Dong Lihua, director of the National Economic Accounting Department at the Bureau of Statistics, also said in a interview with reporters that the United Nations agency known as the \"Human Development Programme\" does not exist. The reporter then searched using the keyword “Human Development Agency” on the United Nations’ Chinese-language website and Weibo, but found no relevant information. Meng Wei said that the latest issue of the Human Development Report in China 2016 highly recognized China’s significant progress in human development. The report states that in 2014, China’s Human Development Index ranked 90th out of 188 countries, placing it in the category of high human development levels. Is the proportion of **consumption expenditure high in our country? Response: In 2016, China’s **consumer spending was below the world average of 17.1%. Dong Lihua explained that GDP represents the ultimate outcome of the production activities carried out by all resident units over a certain period; GDP can be calculated using the production approach, the expenditure approach, or the income approach, with the expenditure approach focusing on the allocation of these final outputs. “Specifically, the uses of GDP are divided into three categories: final consumption expenditure, capital formation, and net exports. **Administrative expenses are included in final consumption expenditure. ”Dong Lihua said. Final consumption expenditure refers to the total amount spent by resident units on purchasing goods and services to directly meet personal or public consumption needs. It is classified, according to the spending entities, into household consumption expenditure and **consumption expenditure;** the latter includes public service expenditures incurred by **government agencies, as well as individuals’ expenditures on goods and services for consumption. “Public service expenditures mainly include spending on areas such as diplomacy, national defense, public safety, and environmental protection ； **Personal expenditures on goods and services mainly include **expenditures on healthcare, education, culture and entertainment, as well as social security; these expenditures ultimately translate into the actual benefits received by residents.** ”Dong Lihua said. It is reported that in 2016, 53.6% of China’s GDP was spent on final consumption; of this amount, household consumption accounted for 39.3% of GDP, while **other forms of consumption accounted for 14.3% of GDP. The remaining 44.2% of GDP is used for capital formation, and 2.2% is used for net exports. “In international comparison, China’s **consumption expenditure is significantly lower than the world average. ”Dong Lihua explained that in 2016, **consumer spending accounted for 14.3% of GDP calculated using the expenditure approach in China, and the same proportion was seen in the United States as well. Furthermore, the corresponding proportions in countries such as South Korea, Italy, the United Kingdom, Germany, Japan, and Canada are 15.2%, 18.8%, 18.9%, 19.6%, 19.8%, and 21.2% respectively, all of which are higher than that in China. The global average for this ratio is 17.1%, while the average for upper-middle-income economies is 15.9%, which is also higher than that of our country. Regarding the issue of funds related to official expenses, which attracts a lot of attention, Dong Lihua explained that in recent years, governments at all levels in China have actively worked to adjust and optimize the structure of fiscal expenditures. By adhering to a policy of frugality, they have ensured that such expenses remain constant or even decrease, resulting in a significant reduction in the proportion of funds spent on administrative management. At the same time, more financial support has been provided for areas related to people’s well-being and key sectors. Upon reviewing relevant data, the reporter found that from 2012 to 2016, expenditures on official functions, official travels, and official receptions across the country declined for four consecutive years; in 2016, expenditures by central government departments and local governments dropped by 35% and 50% respectively compared to 2012. Experts say that even from the perspective of fiscal expenditure, spending on people’s livelihoods accounts for the largest share. It is generally believed that general public service expenditures, including those related to the \"three public expenses,\" constitute the main part of administrative management costs. Dong Lihua explained that in terms of proportion, in 2016, expenditure on general public services in China accounted for 7.9% of total general public budget expenditures, a decrease of 2.2 percentage points compared to 2012. On the other hand, the 8 categories of expenditure related to people’s livelihood account for 54.6% of total fiscal expenditures; if expenditures related to public safety, food supply, meteorological services and other areas that are indirectly connected to people’s lives are added in, then the share of expenditures on livelihood issues rises to around 70% of total fiscal expenditures. Ma Haitao, a professor at Central University of Finance and Economics, said that as structural reforms on the supply side deepen and the fiscal and tax management system continues to improve, China’s expenditure structure will be further optimized and expenditure efficiency will increase. This will provide institutional support for the modernization of the governance system and governance capabilities, and create new impetus for the development of socialism with Chinese characteristics in the new era.