Public Expenditure Management System Study

Public finance is a sort of fiscal mode adapted for market economy. The essence of public finance is to define the relationship between government and market. Public expenditure is the core of public finance, which incarnates governmental functions collectively. The instrument of public expenditure management is government budget. The government budget embodies not only government future plan and public policies of social, economic and politics, but even more important, the democratic institution in economic field, which is the control method to regulate, restrict and supervise the government behavior.Nowadays, our country is being on the transactional period from uniform supply fiscal method to public finance suited for socialist market economy. Characteristic of public, democracy and law is the core to further deepen public finance reform. Public expenditure reform is the key step to build government and market relationship, the essential point to build public finance and market economy. The final reform aim lies in realizing "visual government", which harmonizes and cooperates "unvisual hand" to satisfy to social member's public demand.The logic starting point of thesis is relationship of government and market (social member) and the basic point of thesis is government function in market economy. The thesis encloses what the government should do, that is allocation problem of public resource, and who decide the allocation of public resource, that is power allocation problem. The thesis includes three parts.The first part: explain the basic theory. Firstly, analyze relationship between government and market and research public allocation problem. "Market failure" is the motivity for which the government intervenes in economy. However, "government failure" is an origin causing market regulate government and influence government effective operation in reverse. Government and market, the two imperfect bodies, complement each other and form dynamic and contradictive relation. Democracy and law are the methods that market regulates government.Secondly, analyze and research allocation problem of public power. Distribution and balance of power, democracy and regulation institution conciliate inherent contradiction of government and market. Comprehension, participation, monitor and final decision of social member under the democracy and law institution ensure the effective allocation of social public resource in public fields.The Second part: discuss the general theory of government budget management system. This part firstly analyzes that government budget management system is proposition about public resource allocation. It points out that public policy is the core of public expenditure management. Secondly, the thesis researches four stages, which include budget arrangement, budget implement, budget audit and government report. In the end, research the budget management powers, which include the power of resolution, examine and approve, control and monitor, and investigate the relationship among these powers.The third part: advance the framework our budget management system reform. The direction of China public finance institution and budget management system reform is democratic finance and budget. Budget management system reform is a complicated and systematic project. It is not only an economic problem, but also a political problem. It will make a systematic reform from management level, systematic level and institutional level. The thesis advances several proposals of law system building in institutional level and organizational form reform in institutional level, and constructs an integrated socialist democratic budget management system.