PBC official reignites debate on public finance

Source:Global Times Published: 2018/8/9 20:13:41

Official reignites debate on public finance

A key researcher at the People's Bank of China (PBC), the country's central bank, recently rekindled the debate on the relationship between public and broader finance, media reports said on Thursday.

Xu Zhong, research head of the PBC, pointed out in a social sciences journal that the Ministry of Finance's (MOF) mixed role of being both a State-owned investor and a public administrator, among other imperfections, is behind an imbalance that impairs a socialist market economy.

In the journal, Xu he suggests tackling an imbalance between public finance and broader finance, adding that the roles of the government and that of the market must be clarified and separated.

He also said that the MOF should not simultaneously play the role of referee and ball player when managing State financial assets.

The journal could be considered just another chapter of the heated online spat between officials of the PBC and the MOF that began in mid-July.

Newspaper headline: Official reignites debate on public finance

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