On Government Procurement Under The Framework Of Public Finance Research

Government procurement is behavior of purchasing goods, engineering and service by public sector including government at all levels, in order to meet the social public need, in government functional departments and public supervision, by the use of fiscal fund in accordance with legal procedures. The history of government procurement development in the world has 230 years. China started full implementation of government procurement system from 1998, and government procurement has been playing a positive role in saving financial capital and inhibiting corruption etc. At the same time, because our government procurement system reform is still in fresh stage, and the history of implementing government procurement law has only 8 years, government procurement system is not perfect and nonstandard. In all, government procurement from both scale and norms of behavior are failing to meet the expected system goal, so we must further standardize and improve it.Since the late 1990s began, with establishment of China's socialist market economy system, China started reforming the managerial system of fiscal expenditure, and its goal is to establish public finance system to adapt to market economy system, and the reforming measures include department budget, treasury centralized paying, government procurement, performance evaluation, etc, and the management style of financial funds has been transferring from redistribution in the past to department budget at start, government procurement and treasury centralized paying in process, performance evaluation in final. In 2007, the party's 17th national congress puts forward several suggestions on improving the public finance system goals. Government procurement plays an important role in public finance framework, and government procurement and departmental budget, treasury centralized paying, performance evaluation, asset management and other reform in public spending which restrain each other closely In addition, from the end of 2007, our country started joining GPA of WTO which has definite schedule, so sounding our country government procurement system is more urgent. In this paper, from the perspective of public finance, my research has certain theoretical and practical significance in sounding the public finance framework and advancing the government procurement system reform.Based on public goods theory, contract theory, principal-agent theory, and game theory, by combining theory with practice, comparative analysis methods, I have taken some new exploration in the field of government procurement theory and practice. In the paper, I differentiate clearly government purchasing function for two levels, namely basic functions and policy functions. This kind of functional division will provide a new clue for government procurement theory research. In practical work, how to calculate the government procurement expenditure is important, and I put forward another kind method of calculating. At the same time, this paper discusses the present situation, effect and problems of government procurement system, and its conclusion is as fellows.Firstly, we must sound the legal system of government procurement, and introduce implementation rules of the government procurement law as soon as possible in order to clear detailed rules for the implementation of each specification and standards. It should cover all the parties and all the standard of government procurement process. The government procurement law should be coordinated with the invitation and submission of bids law and other laws.Secondly, government procurement system reform should put forward with coordination of other public expenditure management reform so that we form integral resultant force. At present, the public expenditure management reform progress is not balanced because some work in line with law, and other do not work in line with law, some has achieved significant gains in the country, and orther are still in the pilot groping stage. This situation has affected the overall reforming effect, so we need a systematic overall planning, clear each single reform process and cohesion among all points to avoid detours and minimize reform testing cost.Thirdly, we must actively play government procurement policy functions in order to serve the economical and social sound development. From the development of mature countries we can see that in early stage they pay more attention to government procurement basic functions, in laer stage they pay more attention to government procurement policy functions, which is worth of our study, especially our country is in the period of marketization, industrialization, informationization and urbanization intertwined, we need more actively using government procurement tools, playing the role of government procurement policy functions to promote the healthy development of economy and society.Fourthly, to protect our country and national interests as the essential starting point, we must prudently treat government procurement internationalization problem. Because China's domestic market demand is big, especially a rapid expansion of government purchasing market is obvious, which has attracted much attention of GPA countries. At present our country has entered the period of internationalization of government procurement, we must face the test of government purchasing internationalization in the future. As to treating internationalization problem, we should be based on the state and national interests, make full use of exception clause of GPA, and gradually open government purchasing market to promote domestic suppliers to improve overall competitiveness.Fifthly, we must further standardize government procurement management. Judging from the government procurement range, the key point is to regulate engineering government procurement management; Judging from government purchasing parties, the key point is to strengthen the integrity management of suppliers, and construct supplier credit evaluation system.Sixthly, we should attach great importance to corruption risk in field of government procurement,effectively prevent the risk, and play the role in anti-corrosion at begainning. Preventive measures mainly include introducing competition mechanisms when selecting buying institutions among centralized purchasing agencies, and among centralized procurement institutions and social agencies, and among social agencies. To strengthen all-round supervision of the government procurement activities, government functional departments should increase performance and accountability efforts.Seventhly, we must develope electronic government procurement to improve efficiency. The existing corruption, higher operation cost and lower efficiency in the field of government procurement, only rely on innovation of means, namely electronic government procurement. It will be necessary to establish unified plan in the nationwide, and national electronic government procurement platform as a whole to save construction and operation costs.