| Tax expenditure has always been used as an important tool for the implementation of the public policies,especially the economic policies.But a lot of evidences have shown that its reliability and validity is unsure for it has not been included into the budget arrangement based on the principle of good governance.However,there is still not too much literatures study on this topic till now.This paper aim to clarify that the fundamental way to resolve the reliability and validity problem of the tax expenditure is to integrate it into good governance arrangement.The reliability of the tax expenditure means the lower risk of corruption and rent-seeking during the process of implementation.It focuses on the compliance during the policy implementation that is whether it is correct,it emphasized that the implementation should obey the rules.The efficiency of the tax expenditure means that whether the execution could achieve the goal of the policy,it is result-oriented and it focuses on the performance of the policy implementation.The lack of the reliability means that the risk of corruption and rent-seeking is relatively high,which could lead to the loss of fiscal funds.The lack of the efficiency means that it is not easy to achieve the goal or the encountering of some difficulties,thus leading to the failure of the spending decisions.And the ideal and feasible way to solve the reliability and validity of the tax expenditure is to include it into the good governance management.Therefore,it is of great concern to build a good governance management framework for the tax expenditure.The Western developed countries began to focus on this topic since the early 1960 s.And they also devoted to explore the theories and practices of tax expenditure.It has been found that the tax expenditure is easily to be inefficient and fruitless in the absence of good governance through their studies.For the tax expenditure has the characteristic of indirect,concealment and randomness,thus leading to the erosion of the government fiscal revenue and propagation of rent-seeking behavior.Therefore,it is very important to study how to establish good arrangement of the tax expenditure.Though the western development countries,especially the OECD countries have established tax expenditure system along with the improvement of the study on it.And also,such system has played great role in the improvement of the government fiscal transparency.But there are still very few countries established the good governance principles.There are more and more countries realized the importance and urgency of the establishment of the good governance arrangement for the role that the tax expenditure has played in the economic development.The research on the tax expenditure in China began relatively late.It is well known that the preferential tax policy is the "Automatic Stabilizers" economic policy adjustment,and also an important lever of the tax policy.Though our country has made many preferential taxes as well as many useful exploration works on the implementation and management,the economic researches are mostly focus on the tax expenditure system design and its management.There are still lacks the theoretical analysis which could have comprehensive guidance significance,and also lacks concrete and systematically system design.Though some scholars have realized the important role of the good governance arrangement in the public budget as well as that the budget management arrangements are an import force in promoting government good governance,there are really few studies on the tax expenditure budget arrangement.At present,the tax expenditure in China faces a lot of problems,such as the lower class of the law,the wide scope of the expenditure,the large scale,the unclear of the preference spending choice,the lack of cost-benefit analysis and the nonstandard management.All these problems lead to not only the serious transparency problem the tax expenditure,but also in violation of the integrity of the budget.The tax expenditure plays great role in the development of the economic in our country,but we should realize that there still lacks efficient budget governance arrangement,which lead to the serious problem of the reliability and efficiency of the tax expenditure.Therefore,it is imminent to establish a good tax expenditure budget management.The so-called good governance management means that it should solve the budget problem using budget process and budget report on the five basic rules of the good governance.The five basic rules are legal authorization,accountability,transparency,predictability and citizen participation.The reliability and the efficiency of the tax expenditure depend on good governance arrangement.The main reasons are as follows:On the one hand,including the tax expenditure into the budget process is the prerequisite to ensure its reliability and efficiency.The tax expenditure is a specific type of spending decision.The right of decision includes four points;they are decision-making,implementation,censoring and supervision.The formulation and implementation are executed by the administrative department,and the last two processes are implemented by the legislation department.The legislation department passes the budget process,the censors and supervised the formulation and implementation effectively,which could ensure the reliability and efficiency of these processes.However,if we do not include the tax expenditure into the budget process and the good governance arrangement,the lack of the censor and supervision would affect the reliability and efficiency of the tax expenditure.Therefore,its reliability and efficiency could be guaranteed only if we include the tax expenditure into the budget process.On the other hand,we should also comply with the basic good governance principle except to the above we mentioned if want to guarantee the reliability and efficiency of tax expenditure.Tax expenditure is a special spending mean to the implementation of the policy.The making and the implementation are the two aspects of the policy implementation.So we could conclude that the tax expenditure is an important tool of governance.And the basic role could also be applied to tax expenditure.As an indirect financial expenditure,the funding also comes from taxpayers.The implementation of tax expenditure should be authorized by the NPC.And the NPC should also exam,approve and oversight it.The efficient trust could ensure the compliance and efficiency of the tax expenditure.Open and transparency could strengthen the all-around supervision from the public,thus could avoid the arbitrariness of the tax expenditure and decrease the loss of the financial fund waste.It could also increase the efficiency of the tax expenditure on the basic of compliance,as well as anti-corruption and rent-seeking.The essence of the tax expenditure is kind of preferential policy for the achievement of the certain goals.The lacking of the prediction in the making and implementation of the policy would lead to the bias of the goal.And may even lead to the waste of the public resource.The actively participation of the citizens would be helpful to the achievement of the government goal,including the social,the economics and the political ones.The five principle of the good governance arrangement could promote the reliability and effectiveness of tax expenditure.But such roles depends on the budget because that the budget governance is the most basic,most formal and most fussy process of the public governance.The budget and the basic principle links to each other.The budget governance is an important and key factor to achieve the goal of the good governance.Therefore,the good governance arrangement should base on the framework of the public budget.In general,tax expenditure is an important tool for implementing public policy,especially economic policy and industrial policy,and is widely used in many countries,such as China,but only if it is integrated into the budget process will it be truly reliable and effective.Integrating into the budget process does not just mean to be written in the final accounts report,but to establish a complete governance framework,that is,the budget process and the report of the tax expenditure need to meet the five principles of good governance.Based on the existing tax system in our country,this paper demonstrates the necessity of the budget allocation of tax expenditure and the relationship between basic principles of good governance arrangement and the tax expenditure budget management,through theoretical analysis,model analysis,history and comparative analysis.This paper also describes the framework of budgetary governance arrangements integrating with tax expenditure--integrating the tax expenditure into budget process,constructing the tax expenditure reporting mechanism and the performance evaluation mechanism.On this basis,combined with the practical experience of foreign budget management,this paper puts forward to reform proposals of the budgetary governance integrating with tax expenditure:(1)reform of the budget process.Through the reform of the budget process,we can expand the budget preparation time and space,make the tax expenditure in the budgetary process;based on the characteristics of tax expenditure.We can also establish a separate tax expenditure review mechanism and tax expenditure budget.The assessment and audit of tax expenditure should be implemented by an external independent agency,in additional;the tax expenditure should also strengthen the internal and external control.(2)Through the construction of tax expenditure reporting mechanism,we draw the basic standard of tax expenditure report in our country.The scope of the budget for the tax expenditure should include all taxes currently levied by China and draw the tax expenditure table according to our tax deductible tax code table to estimate and forecast the tax expenditure value of each tax.The estimated method should be an income abandonment method which is internationally accepted.In addition to the definition of the basic content,the tax expenditure report should include reports of tax and expenditure assessment and audit,and explanations and analysis of tax expenditure.(3)Building tax performance evaluation mechanism.Determine the principle of performance evaluation of tax expenditure;establish the index system of performance evaluation of tax expenditure,professional evaluation institution and effective performance information system.The main contents of this paper are as follows:The first part is introduction,which introduces the background and the significance of this paper.And then it analyzed the difference of the tax expenditure budget management and budget management through the review of the researches of both domestic and abroad.And then it put forward the main idea of this paper,which is that the efficiency and reliability of the tax expenditure depends on the good governance arrangement.The main approach is to build a framework which could incorporate the tax expenditure budget arrangement into the good governance arrangement.The second part studies the necessity of tax expenditure and its budget arrangement.This paper concludes that tax expenditure is an essential part of the fiscal expenditure through the definition of its concept,the comparative of the direct fiscal expenditure and the empirical analysis of the tax expenditure incentive effect.But due to the nature of the tax expenditure,its efficiency and the reliability is depending on the good budget arrangement,it would play great role on the economic development and the achievement of the government policy making only on the basis of the good governance arrangement.This chapter demonstrates the necessity of establishing the tax expenditure budget arrangement through the analysis on the tax expenditure management situation and the cases on its efficiency and liability.The third part is the basic principles of the tax expenditure budget management.The tax expenditure is an important tool for the policy implementation.But the making and the implementation are the two sides of the management.So the authorization,the accountability,the transparency,the predictability,the participation of the good governance can also be applied to the tax expenditure.In this chapter,I mainly introduced the approach of how to incorporate the five basic principles into the tax expenditure budget arrangement.The fourth part is the governing framework of tax expenditure which links the public budget.The public budget is the important carrier of the country's good governance arrangement.Budget is necessary to achieve good governance.The most optimal and feasible governance arrangement is to incorporate tax expenditure into the budget process for effective governance and control.There are three basic requirements of the tax expenditure budget arrangement,systematically integrating the tax expenditure into the budget process,calculating and reporting the tax expenditure,and evaluating the tax expenditure performance.This chapter is the core chapter of the full text and the main innovative content,namely,establishing the basic framework of good budgetary governance arrangements with tax expenditure-the budget process and reporting mechanism with good governance principle.The fifth part is the international experience of tax expenditure budget governance arrangement.Through the introduction and analysis of foreign tax expenditure budget governance arrangements,I've summarized the experience of tax expenditure management arrangements in different countries,which lay the foundation for building China's tax expenditure budget management arrangement framework.The sixth part is the reform of tax expenditure towards budget management.Statutory empowerment,accountability,transparency,foresight,and public participation are fundamental principles of good governance,and budget procedures and reporting mechanisms are rational and feasible ways to achieve governance arrangements.Thus,we need budgetary reform to make tax expenditures placed under good governance arrangements.Increasingly prominent.Therefore,the tax expenditure reform towards budget governance is imperative.On the basis of drawing lessons from the experience of foreign tax expenditure budget management,and under the premise of the basic principles of good governance,put tax expenditure into the budget process and establish the tax expenditure reporting mechanism are both core content of China's tax expenditure reform.In conclusion,tax expenditure is an important tool for implementing public policy,especially economic policy,the ideal and feasible way to fundamentally solve its reliability and effectiveness is building the budgetary governance arrangement that incorporates the principle of good governance.Based on the current situation of China's tax expenditure management,the core content of the reform of China's tax expenditure towards budget governance is to reform the budget process by integrating tax expenditure on the basis of the principle of good governance,establish tax expenditure reporting mechanism and performance evaluation mechanism.The main innovations of this paper are as follows:(1)Although there are lots of research on tax expenditure management at home and abroad,but the combination of tax expenditure and good budget governance arrangement is weak,this paper analyzes that the reliability and effectiveness of tax expenditure is depended on good budget governance arrangement.(2)Combine the basic principles of good governance with the governance arrangements of tax expenditure,which provides a theoretical support for constructing a framework of budgetary governance arrangement with tax expenditure.(3)Describe a basic framework of budgetary governance arrangements with tax expenditure on the basis of research-budget procedures,reporting and evaluation mechanisms,which incorporate good governance principles. |
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