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Filling the gaps in GDP

China Daily | Updated: 2009-05-12 07:52

The low ratio of fiscal revenue to GDP doesn't mean the government has not got enough from the national annual income, says an article in Changjiang Daily. Excerpts:

Let's put two recent news reports side by side: one says that the central government is mulling over a plan to increase the ratio of incomes from labor to national income initial distribution. The other says that the current ratio of fiscal revenue to GDP - up from 24 to 30 percent between 2003 and 2007 - is lower than the world average of around 40 percent.

The two reports are making two different points. The plan in the first one is meant to allow the masses a bigger share of the cake (of national income) while the ratio in the second one seems to tell us that what the government cuts off from the cake is not a big enough chunk.

Filling the gaps in GDP

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