Research On The Financial Supervision Under The Public Finance Regime

Based on absorbing and referring with previous research, the dissertation aims to construct a financial supervision system matching with public finance regime by exploring and analyzing the general theory and practical problems in financial supervision. This dissertation insists on the basic principle of integrating theory with practice, employs the method of combining normative analysis with positive analysis, and theoretical construction with theoretical application. The dissertation focuses on why and how China reforms its financial supervision system. It attempts to construct a perfect and efficient financial supervision system under the frame of public finance, with a view to provide theoretical and policy references.This dissertation consists of six chapters. Besides introduction, it is composed of theoretical research and practical investigation. The theoretical research includes chapter 2, 3, 5 and 6, while the practical investigation is illustrated in chapter 4. The structure and content of the dissertation are as follows:Chapter One: introduction. This chapter introduces the argument and significance of the dissertation. After making a systematic deduction and brief comment of the current research on financial supervision, the author puts forward the researching method, points out its innovation and shortage.Chapter Two: the general theory of financial supervision. This chapter elucidates the meaning of public finance regime and financial supervision, discusses the relationship among socialistic market economic regime, government and public finance regime. It also puts forward the concept and attributes, motivation, levels, objectives, contents, means and effects of financial supervision under public finance regime, which are necessary theoretical foundation for further discussion. The main task of this chapter is to establish the conceptual system of financial supervision. By analyzing the basic function of financial management and combining with the need of public finance, the attribute of financial supervision is set as means and tools to realize financial function. The motivation of financial supervision is elucidated in the analysis of participants' behavior and of information imbalance in financial activities. The author divides financial supervision into four levels: public supervision over government financial behavior, the NPC's supervision over government financial behavior, the financial supervision of government finance department over budget unit and its self-supervision, as well as supervision of tax department over taxpayers' behavior. The author also points out the aims in each level. The main contents of financial supervision include budgetary management supervision, fiscal revenue supervision, fiscal expenditure supervision, state-owned-equity supervision, and other public funds supervision. The effectiveness of financial supervision includes intensifying financial management, enforcing financial function, maintaining financial and economic discipline, improving democratic politics and government efficiency.Chapter Three: analysis on the present status of China's financial supervision system. Firstly, the dissertation analyzes the composition and operation of the financial supervision organization, introduces the financial supervision work of community, the NPC, financial department, auditing department and tax department. Secondly, the dissertation analyzes the present financial supervision system with game theory, points out the barriers in its incentives and constraints. Lastly, the dissertation summarizes the defects in the present financial supervision model.Chapter Four: an overview of foreign financial supervision system. In this chapter, the author gives a brief introduction of the most popular financial supervision models in foreign countries, which will provide references for China's reformation. There are mainly four types in foreign countries: legislative, judicial, independent and executive. Legislative dominates in most countries, then the judicial and independent. Executive is seldom adopted.Chapter Five: the first part of thoughts and countermeasures for China's reform in financial supervision system. Firstly, the dissertation reviews the system changing theory to establish theoretical basis for the analysis of financial supervision system. Secondly, the dissertation suggests legislative type of financial supervision with the basic purpose of two-way supervision, which can meet the need of public finance regime and is the direction of reformation in China. Lastly, the dissertation provides detailed measures to build up the new model, which include establishing public supervision and the NPC's supervision over government financial behaviors, ameliorating financial supervision of government financial department over budget unit as well as itself supervision, improving supervision of government tax department over taxpayers' behaviors.Chapter Six: the second part of thoughts and countermeasures for China's reform in financial supervision system. Using game theory analysis, the author gives the following conclusion. In order to realize the goal of reform in financial supervision system, the solution is to reconstruct our cultural system and change the effectiveness pattern of the government and the public in the game theory analysis. In this way can the system change come true.