The Research About The Reform Of The Government Finance Statistics System In China

Since the1990s, the world broke out a serious financial crisis in Mexico and in Asian. When two crisis were still remembered, the outbreak of the U.S. subprime mortgage crisis happened in2007. After two years it caused the global economic crisis. However, the world economy had not yet come out from this crisis, the European debt crisis began to be staged and now is ongoing. Throughout the crises, whether it was a financial crisis, economic crisis or the current interpretation of the European debt crisis, it showed that the financial risks until the crisis often had a direct or indirect relationship with the government debt crisis and financial payments crisis. The huge government budget deficit may conducted diffused and induced the financial crisis, the financial crisis might also be passing spread, induced the Government’s fiscal crisis and the budget crisis would deepen the financial crisis further. From the European debt crisis, we see the practice in Greece and other European multi-countries. Then the fact shows that whether the crisis break out and how it impacts on others are relative to the national financial strength. Finance is the important means of government response to the crisis and the safeguards to combine comprehensive disposal program fall for the real,as well as making up the loss caused by the crisis.In order to regulate the world’s macroeconomic statistics to facilitate the exchange and comparison of countries. After decades of development and improvement, the United Nations, the International Monetary Fund (IMF), World Bank and other international organizations develop a series of international statistics specification, of which the most important is the National Accounting System (SNA) after multiple revisions and the Balance of Payments Statistics manual (BOP), the Monetary and Financial Statistics manual (MFS) and Government finance Statistics manual(GFS). Since Chinese reform and opening up, statistics academia study the macroeconomic statistical systems in China and has established a national economic accounting system compatible with the social market economic system. However, the government finance statistics is still relatively weak in the overall macroeconomic statistical system. Therefore, studying Chinese government finance statistics are meaningful in the practical and theoretical side.This study reforms the existing system of government finance statistics following the IMF GFS (2001) framework and combines with national conditions in China, builds the GFS system, thereby improving the overall quality of fiscal statistics. The starting point of this study is that the GFS in China is more in line with the requirement of the market economy system and the international norms. We want to provide real and effective data for healthy financial statistical analysis which is good for finding the weak roots of the GFS in China and provide a scientific basis for policy formulation in order to achieve the healthy development of the Chinese government finance.Paper consists of eight chapters, each chapter is organized as follows:The chapter Ⅰ introduction. First part put the question with the combination of the recent crises and pointed out that there was a mutal interpretation between the financial crisis and the fiscal crisis; Second part showed the study’s theoretical and practical significance; Third was about the research status and commentary and summarized the basic situation of the statistical study in existing Government Finance Statistics.On the basis of the results, making the clear focus of this study needed to be done; Fourth part introduced the structure and content of the paper; Fifth summarized the main innovation and insufficient part of the work.The chapter Ⅱ was about the theoretical basis and development of the government finance statistics. From two aspects of the revision process of the development of financial theory and international financial statistics, this chapter began to collate and summarize the emergence and development of government finance statistics.The paper’s forcus was on the characteristics and statistics range of the Government Finance Statistics Manual2001and explained the relationship between the government finance statistics with the other three major macroeconomic statistical systems.Chapter III showed Chinese Government Finance Statistics system status and direction of reform. First part described the overall situation of the Chinese Government Finance Statistics system, including the scope of the accounting covered, the accounting basis, the core content is the flowing of financial funds, as well as grouping and index system content; Second, after the carding of the implementation of the GFS, we analyzed Government Finance Statistics in Australia and Canada and provided its significance for China to promote the reform of GFS; Last we pointed the gap between Chinese Government Finance Statistics and GFS (2001). The major accounting scope was various. The basis of accounting on a cash to achieve system did not follow the accrual. The revenue and expenditure classification system was following GFS(1986) classification system. The financial analysis index system still used the budget deficit indicators. We explored how to reform.Chapter IV was about the research of GFS classification system in China. This chapter is a focus of this paper. Firstly we described the basic framework and the principle of the classification of government revenue in China; Secondly according to the IMF’s Government Finance Statistics Balance of Payments Classification GFS(2001) and the Chinese government revenue classification, we supported the principle of two classifications conversion, under which we designed government revenue, and functional classification of government spending, government spending and economic conversion preparation method provides a scientific basis for the future reform of the classification of government revenue.Chapter V was about the GFS system statistics expansion of the scope-to build financial and social security funds of state-owned capital statistics Satellite Account. This chapter was another focus in this paper. We introduced the scope of government finance statistics accounting, including accounting accounting scope of GFS (2001) and the Chinese Government Finance Statistics and pointed out that the existing financial statistics and accounting range unscientific; Second, we expanded the scope of government finance statistics to build a Chinese state-owned capital finance Statistics satellite account accounting system. According to China’s national conditions, the reform of state-owned enterprises are still in a very important position and the state-owned capital is critical to the health problems of government finances, not just put a public company into the accounting and other state-owned capital should put its business into the accounting and make effective convergence; Finally, in accordance with the accounting scope of GFS (2001), we demonstrated that social security comprehensive included in the accounting of the scope of the need to build statistical satellite Account accounting system of China’s social security funds, and designed to be fully integrated into the social security accounting scope of social security and government finance statistics convergence mode.Chapter VI described the Chinese Government Finance Statistics and method of accounting reform. This chapter was the focus of the study, including the two parts of the Chinese Government Finance Statistics the accounting object reform and the Chinese Government Finance Statistics Accounting Standards reform. The accounting objects part of the main analyzed GFS (2001) in the overall framework of government operations table, other economic flow statement, balance sheet and cash sources and uses table four tables, and argued that government activities could be assessed through the four tables on the economy the impact and sustainability of fiscal policy, the guidance of the reform of the accounting object. The accounting guidelines section pointed the Chinese Government Finance Statistics Accounting Standards was based on the framework of reform of GFS(2001).Rreviewing the construction of accounting guidelines, and analysis of the advantages of accrual and cash basis the shortcomings of the system, we pointed out that the need for the implementation of accrual reform guidance; Secondly, the record of the basis of the Chinese government fiscal behavior changed statistical record time as well as the Chinese system of government finance statistics.Chapter VII was about government finance statistics analysis function. It based on the health of the financial and government finance statistics to prepare healthy financial analysis index system. From financial crisis, sustainability of fiscal revenue, fiscal expenditure performance, we evaluated and analysized the financial health of the Chinese government to provide a scientific method for the evaluation of fiscal policy, which is conductive to the government’s fiscal health and sustainable development.Chapter VIII was of summary and outlook. On the one hand, we summarized and reviewed the focus of this study and the results and pointed out the deficiencies in the study; On the other hand, we pointed out the further research was needed.With the IMF GFS (2001) framework,we made many innovations for further reform of the system of government finance statistics:1. we want to expand the contents of the Chinese Government Finance Statistics. On the one hand, we combined with China’s national conditions, as well as the characteristics of the state capital and considered the state-owned capital should be fully integrated into the Government’s financial accounting system, rather than completely fellow GFS (2001) referred to a public company, and designed a convergence between state-owned capital Finance and Government Finance Statistics; On the other hand, we proposed China had not yet integrated the accounting of the scope of government finance statistics social security funds fully into the accounting. And we built statistical Satellite Account accounting system of China’s social security funds, as well as designed convergence model of social security funds and government finance statistics.2. We studied fiscal revenue and expenditure classification system of the Chinese government and the International Monetary Fund Organization government fiscal revenue and expenditure classification system, according to the difference in the balance of payments classification subjects. According to government revenue, the function of government spending, government spending economic,we made conversion and phased reform program for China’s government finance statistics and international norms. Pointing out that the current Chinese government revenue and expenditure classification system was unscientific and according to the current classification of income overstated government revenues, this did not lead to increased income items classified as income, in fact, was the conversion between the assets owned by the government, the same on the expenditure side, there were such cases, some spending overlapping, this could not be true reflection of the government’s net wealth, the net wealth was the government really could be used to resist spending generated by the financial crisis and the financial crisis.3. We evaluated the Chinese Government Finance Statistics analysis functions. Different from other studies which made research or evaluation system by separate studies, or just studied the accounting system of government finance statistics, our study was built on the basis of statistical accounting system.We made a healthy financial evaluation index system and combined the two together. Then we further pointed out that the integrity of the statistical system should be one from the statistics of the original data to the data processing. Every step would affect the timely discovery of the root causes of vulnerability of the financial operation and affected the scientific and rational fiscal policy.4. Our research was based on the IMF GFS (2001) requirements and studied the flow and stock accounts, as well as statistical accounting standards reform of China’s Government Finance Statistics. Our study demonstrated that the sustainability of government activities impacted on the economy and fiscal policy by the government operations table, other economic flow statement, balance sheet and cash sources and use table. We recorded the need for accrual basis and proposed reform of the instructional program as well as record time that changed in government fiscal behavior of the GFS system.There are still some shortcomings in our study of integration of financial statistics. The ideas about the GFS system reform are just tentative plan. This requires further study to establish a perfect system of government finance statistics. Evaluation of the financial health should have used statistical methods to make some empirical research, while because of some of the data is difficult to obtain, we just point out the direction of the analysis. This study is based on the analysis of the technical aspects of government finance statistics accounting system and describes little the quality of the raw data. These need to continue to strengthen in future.