On The Reform And Innovation Of China Finance Budget Management System

Corresponding to the objective of China finance reform, which is to restructure the public finance system so as to fit the socialist market economic system, our finance budget system should be reformed and innovated. And now the reforming and innovating of the budget system, which mainly acts on the departmental budget, the treasury management system, the government procurement system, the social security system, and etc, is the deep level of finance reform. Mainly there are three kinds of problems in China budget system: lag in the theories and techniques, low systematization in the reform and innovation. These problems can be expressed as follows: scarce in public budget theories with China feature, insufficient in studying the laws of the reform and innovation, non- systemic in the operations, stagnant in budget management technique and weak in budget management supervising. All these will blind the reforming and innovation, enlarge the cost of the reforming and innovation, and slow down the reform. Thus it is urgent to set up our budget management theory and to design the budget management system on systemic level. At the same time, it is necessary to seek the general discipline of the reform and innovation so as to make the reform efficient and rapid. The budget management system of the western countries is founded on the basis of market system, and their theory system has been innovating with the development of market economics and market economic theory, the progress of managing technology and scientific technology. Public goods theory, public choice theory and budget game theory are basic theories of the budget management. We can draw a basic theory of China budget management by analysing the condition of China budget management, referring to the modern budget managing theory of western countries and linking the general discipline of market economics. Although following the general discipline, China budget management has its particularity .For example, owing to the various contents and the allotting mechanism of public goods and the basis of politics, public choice theory can only beused for reference to analyze the relation between budget and politics. And so we must construct China democratic financial theory. There are two kinds of budget games known as horizontal game and vertical game. We can arrive at China horizontal budget game by analysing the benefits of all administration levels. Corresponding to the structure of China unitary form of government and the feature of relations between different governments, forming the budget game which can reach the optimum equilibria is the ultimate task of national budget management, according to the China horizontal budget game. According to the above statement, we can make a conclusion that, under the socialist market economics, the objective of budget management reform and innovation is to establish the high efficient public budget management system that fits the socialist market economic system and politics system. The reform and innovation of budget management is a large, complicated-operated program. So it must follow a certain rule. Referring to the experience of the western countries can help us minimize the cost and get efficiency. The ultimate reason of the reform is the interior and exterior contradiction. The change of fiscal function causes the budget system innovation. Moreover, politics and economics reform, the progress of theory and technology are also important reasons that promote the budget innovation. The reform and innovation of budget management possesses the periodic characteristic. Fitting the basic pattern of China economic system reform, the budget reform and innovation must also follow a pattern of gradual promoting. Being only a part of the reform of economic system, the budget reform and innovation can not be separated from the large environment of the f economic system reform and politics system reform. From the analysis above, we can come to a conclusion: The budget reform and innovation must be taken in a systemati...