Government 'snatches big enough slice of fiscal pie'

State revenue now accounts for 35 to 40 percent of nation's GDP: former official

China should no longer expand its government income, which already takes a relatively large share of GDP, but should optimize its fiscal structure to tackle disparities, a former senior tax official said.

Xu Shanda, former vice-minister of the State Administration of Taxation, said on Thursday that the percentage of China's government revenue as a share of the country's GDP is between 35 and 40 percent.

Although the official figure is 31 percent, according to the government's budget report for this year, Xu said the actual figure should be much higher if taking into account State-owned financial institutions and revenue at the local level.

Government revenue comprises tax, operational income and the return on State-owned assets.

"This level (35 to 40 percent) is on a par with developed economies such as the United States, where it is between 36 to 38 percent, though it is still lower than high-welfare countries in northern Europe, where it is above 45 percent," Xu said.

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