The Study Of Public Budget Supervision System

With the deepening of the practice of socialist market economy and thedemocratic law，the development of corresponding public finance system hasbecome an inevitable requirement of this era. And in the framework of thepublic finance system, to establish a public budget system is the key element.This paper mainly focuses on how to improve the public budget supervisionsystem, to establish a NPC-supervised public budget system which conformsto the increasing demands of democracy and the market economy.Firstly, this paper systematically elaborated on the process of historicalchange and institutional environmental effect of the public budgetsupervision system. On this basis, the paper studied the reformed ShanghaiMinhang budget supervision system, which is designed as aninformation-transparent and NPC-supervised public budget supervisionsystem which encourages citizen participation. With the Minhang districtpractice as an example, the paper brought forward an effective path ofimproving public budget supervision system. This paper thoroughly observed the reform of Shanghai Minhang’s localpublic budget supervision system, focusing on the analysis of its intrinsicmotivation and fundamental changes, policy selection, as well as the internaland external factors influencing the effectiveness of the system. Minhangpractice is only a reform of a partial system. This paper took Minhang as asample, discusses the three key elements of public budget supervision system,which is "citizen participation","budget information transparency" and "NPCsupervision", then seeks the possibility of innovation under the currentpolitical and legal system. The paper also analyzed the conditions and factorsimpacting system innovation, and proposed the technical specifications andmode of citizen involvement, budget transparency and NPC supervision(especially right for the deputies to propose amendments during the People’sCongress)Public budget supervision is not only a financial matter, but also amatter of national governance structure and distribution of power. Based onthe consolidating the NPC budget supervision and the breaking of the budget"black box" operation, how to deal with the relationship between Congressand the CCCP, the government has become a critical proposition. This paperanalyzed the role of the Party in the budget system, and cited the partycommittee, NPC, and government should be in a virtuous closed loopreferring to the public budget system. The role of Party in the budget processshould be formally institutionalized. Such a system design may reduce theconflicts in case of budget reform with the existing system, and help toimprove of the authority of NPC, as well as strengthening the party’s abilityto govern through the budget process. Public budget supervision system is a systematic project, which includesNPC’s budget supervision, an open and transparent budget information, andcitizen, community participation in the budget process etc. Finally, the paperalso proposed that the reform of the technical aspects of supervision systemshould be a gradual transition to the reform of the state legislative level,which can provide the institutional changes suggestions and legislativeproposals for the public budget supervision. In addition, the budget issues oflegal supervision may also involve changing some aspects of the powerstructure, and changes in the pattern of certain political decisions. Perhapsthis will be key points of the further reform of budget supervision.