Analysis On Rent -Seeking Of Public Financial Expenditure

Whether in developed countries or in developing countries, rent-seeking is a normal phenomenon. Rent-seeking influents and even destroys the development of economy in different degree. Therefore, analyzing rent-seeking in public financial expenditure and putting forward relevant measure is very meaningful to standardize the management of financial funds and promote financial system reformation.This article uses rent-seeking theory for reference and primarily analyzes all kinds of rent-seeking activities in public financial expenditure. The study indicates that the government interfering and public agency problem is the reason of rent-seeking activities in financial expenditure. Our country is now in a special economy transforming period, the market economy system is still not perfect, the public financial expenditure frame needs to be established, and at the same time, the governmental decision still has blindness. Therefore, many loopholes exist in the public financial expending management, resulting in all kinds of rent-seeking activities happening.Basic on establishing the model of entrusting-acting game in public financial expenditure, this article points out that to limit rent-seeking, it's necessary to begin with financial system reformation, and through establishing rent dissipation mechanism, compress and dissolve the rent-seeking space from system level. In practice, the concrete measure is to deepen reformation from areas of departmental budget, the systems of government procurement, concentrated treasury collection and payment, collection and payment by two lines.Finally, to limit rent-seeking, it's very important to enhance the public financial supervision and accelerate the ethic and moral development, making rent-seekers " can't do" in system constraints, "dare not do" in supervising, and finally" not wish to do " mentally" , so as to dissolve all kinds of rent-seeking activities and improve the usage efficiency of financial funds.