We posit that the Russian fiscal system presents noteworthy shortcomings relative to the Chinese system. These include lack of transparency in the capture of energy revenues, lack of integration of fiscal expenditures into a unified Treasury system, and massive implicit subsidies in relationships between producers and both national and sub- national governments. Further, we argue that, at least in the rapidly-growing coastal provinces of China, the public sector in China is moving more rapidly than in Russia toward a greater orientation to growth-supporting activities. With all its shortcomings, the emerging sub-national public sector in China appears to have.
