The Research Of The Budget System For State Capital Operations

The transformation from planned economy to market economy is actually a transformation of allocating social resources. In other words, the plan-oriented allocation of social resources, which let a country gathers and allocates all social resources for different needs of construction, transforms to a market-oriented system. First, it changes the relationship between the government and state-owned enterprises. The government was once responsible for state-owned enterprises in all aspects including production, operation, finance and personnel. After the transformation, the enterprises become market entities and they have full authority for their own management. The government’s identity and functions also change accordingly, hi a planned economy, the government serves as executive authority, owner of means of production and direct manager of social production. When it transforms to a market economy, the government let the market and enterprises be responsible for production and investment.The state financial activities are the activities that the government uses its political and financial power to adjust distribution of national income. They play an important role in consolidating the economic foundation and political power of the government; providing public services, as well as guaranteeing the stable operation of society and economy. To guarantee the government to realize it identities and functions, the state finance need to be more profound in social management than only production-oriented. Public finance provides public products and services to offset market failures. The finance for state capital has the government as the owner of means of production to supervise state-owned enterprises at the macro level. On the whole, it is called dual structure finance. The state budget is an efficient measure to realize the state finance, and it need to accommodate to China’s dual structure of finance which consists of budget for public finance and budget for state capital operations. The budget for public finance provides public products and services and the budget system for state capital operations helps state-owned economy to utilize its structure at the macro level and preserve or increase the value at the micro level. As a result, different budgets call for different policies and systems.China’s budget system for state capital operations has experienced three phases of development from seeding to trial period and shows both top-down and bottom-up features in the process due to the efforts of both central and local governments. The national policies keep clarifying the direction of budget system for state capital operations. Local trials provide precious experiences. The construction of budget system for state capital operations is a process of dynamic development consists of practices, feedbacks and revisions from different dimensions. With eight years of practice, we have made great progress in the institutional construction. However, there are still controversies and require further improvements.The 18th CPC National Congress together with its third and fourth plenary sessions emphasized the significance of the budget system for state capital operations in utilizing state economic layout and structure as well as preserving and increasing the value of state capital. They also put the improvement of the budget system for state capital operations on agenda and stressed urgency of the work. To strengthen researches in budget system for state capital operations from the perspective of dual financial framework meets the needs of the development of China’s socialist market economy. It is of great theoretical significance to improve budget management and dual finance recognition. By the meantime, it can also guide the practice of the budget system for state capital operations to some degree which is important for utilizing national economic layout, structural adjustment and state-owned enterprise reform.This basic structure of this dissertation is as follow.Firstly, the author gives a detailed introduction of the research background, significance and methods of the budget system for state capital operations, and also gives clear definitions to the basic concepts namely budget for state capital operations and budget system for state capital operations. On this basis, the author would further demonstrate basic economic theories related to studying the budget system for state capital operations, including dual financial theory, base and superstructure theory, theories of nation and property rights, and also principal agent theory. Then the author will follow the mainline of dual finance theory and its study related to budget for state capital operations and budget system for state capital operations. The author would review current researches on budget system for state capital operations, and demonstrate on their theoretical contributions, deficiencies and the direction of future studies.Secondly, the author would elaborate on the significance of the budget system for state capital operations as an important part of national budget system, a key institutional guarantee of owner’s equity of the state, a necessary means to manage state-owned assets, a successor of dual financial system. The author would then analyze the budget for state capital operations and its dual attributes of publicity and profitability, and further elaborate on the capital operation characteristics of budget for state capital operations. Furthermore, start from the internal relationship between the dual attributes of the budget for state capital operations and the dual functions of the budget system for state capital operations, the author systematically discuss the major functions of the budget system for state capital operations from both macro and micro prospective.Thirdly, the author would analyze the budget system for state capital operations generally under the whole system framework. By dividing institutional environment into national institution and social institution, the author would study the budget system for state capital operations respectively and also discuss the internal relevance and logics between the two institutions. The author would demonstrate on how the institutional environment potentially influences and modes the budget system, and the author would also illustrate on how the existence and development of the budget system are objective and inevitable. Then, from the perspective of the whole budget system, the author would analyze in detail the relationship and differences between budget for state capital operations and other budgets including general public budget, government funding budget, social insurance fund budget, etc.Fourth, based on the status quo, the author would give empirical analysis of budget system for state capital operations and its actual influences on state-owned enterprises’ business performances. The author would also inspect the effects of the budget system for state capital operations and sum up the major problems and causes.At last, based on the analysis on the budget system for state capital operations above, including essential contributes, functional orientation and institutional environment, the author studies the major tasks of China’s budget system for state capital operations to meet current national policies and requirements of economic developments. The tasks include consolidating the dominant role of public economy, developing the mixed ownership economy, emphasizing capital management, improving people’s livelihood, adjusting the structure for steady development, and adapting to the three-level state capital management system. The author promotes targeted reform ideas and advices including enlarging collection scale of state-owned capital gains, enriching varieties of state-owned capital gains, raising the collection rate of state-owned capital gains, expanding sharing scope of state-owned capital gains, and promoting a store and increase of value of state-owned capital gains. At the same time, the author also suggest increasing investment in public finance, social welfare and social insurance, strengthening the whole process monitoring of the establishment, enforcement and approval of the budget for state capital operations, and improving the efficiency of performance evaluation management of the budget for state capital operations, improving the budget system for state capital operations, and pushing forward an overall development of national economy and society.The innovations of this dissertation include:this dissertation starts from dual financial theory and elaborates on the reason of birth, basic content, institutional environment, related elements and direction of reform of the budget system for state capital operations based on the concepts of budget system for state capital operations, the essential attributes and functions. Confronting current tasks of China’s budget system for state capital operations, the author clarifies the basic ideas of reform and gives advice to constructing institutional system. The research above maintains internal logical consistency and fits in China’s updated political and economical background as well as related requirements of national budget system. The research also enriches studies of China’s budget system for state capital operations under the framework of national budget system and dual financial theory.From the perspective of institutional analysis, this dissertation constructs a general analytical framework of China’s budget system for state capital operations which divides institutional environment into national institution (including political institution, economical institution and legal institution) and social institution (culture and social regulation). Under this framework, this dissertation demonstrated the influences of institutional environment on China’s budget system for state capital operations, which proves the internal consistency between China’s budget system for state capital operations and socialistic institutions with Chinese characteristics as well as enriching the research on institutional environment of China’s budget system for state capital operations to some degree.From the aspect of research methods, considering most of current studies on this subject are oriented toward qualitative analysis, this dissertation choose listed state-owned enterprises and samples and apply to the method of PVAR. The author adopts latest inspection data to analyze the enforcement effects of the budget system for state capital operations, and testifies the positive effect of this system to the operational performances of listed state-owned enterprises including improving the profit of state-owned economy, consolidating the dominant role of public ownership, and providing theoretical support to the construction and improvement of the budget system for state capital operations.