Premier Li Keqiang said that if the government wants its people to live a rich life, it should be prepared for a thrifty life itself. It's predictable that governments at various levels will have a harder life than before as debts must be repaid for projects in the education, social welfare, healthcare, pensions and other fields concerning the people's livelihood, says an article in the Guangzhou Daily. Excerpts:

The growth rate of the government's revenue in 2012 dropped 12.2 percentage points compared with 2011. The government must ensure that the limited revenue will be used in the most important areas.

The government should lower the costs of its daily operations. There must be laws to supervise and inspect the government's budget and spending.

While closely watching local government's spending, the central government should also reform the tax distribution system, which has not been changed since 1994 to grant local governments more tax revenue. Or it will be almost impossible to let local governments get rid of its reliance on revenue from land sales.

The future reforms of China will largely be reforms of the government. There should be clear boundaries between the government and the market. The Chinese government should draw lessons from the past decades of fast economic growth and find better ways to serve the public's interest.

The government reform is in its nature a process of self-reform, which is reflected by the transformation of Chinese government's role. The success of the key reform depends on the tax distribution reform and the progress of the rule of law in China.