Regime Reform and Fiscal Cost Assessment

Along with the process of industrialization and urbanization, regime reform is one of the key challenges facing China in the decades to come. The full picture of regime reform must be figured out it order to provide more information to the policymaker, in Which fiscal cost assessment can play an important role. Fiscal cost assessment helps to provide a rational lens for understanding The potential effect of regime reform, comparing different reform measures, and achieving policy goal successfully without too much fiscal cost. As an application, this paper sets up an assessment model for Huji system reform to estimate its fiscal cost in social assistance. Inter-regional gap in social assistance benefits, settlement rate and poverty rate are taken into account to figure out how Much it would be in fiscal,spending. Based on this application, this paper discusses the important implication of fiscal cost assessment for China's regime reform.