Cheng Wenhao and Lu Dapeng

　　a Institute of Public Administration, Tsinghua University

　　b Finance Office of Xinjiang Uygur Autonomous Region

　　Abstract:Government-financed persons (GFPs) form the basis of government administration and the number of the GFPs has a direct bearing on government efficiency and social harmony. Government restructuring since 1998 has effectively curbed inflation in the number of the GFPs, which at present remains at a safe overall level and under control. However, optimizing the structure and functions of GFPs still poses a huge challenge to the central government. The issue of GFPs is by no means an isolated one, but is closely related to government restructuring at a deeper level. In a real sense, the issue of GFPs is a microcosm of China’s government restructuring and many of the underlying problems in the government system find a concentrated reflection in the question of GFPs. Conversely, many of the real problems in GFPs can only be thoroughly resolved by government restructuring.

　　Keywords: government-financed persons, institutional reform, size of government