The Study Of State-owned Capital Operation Budget Reform Based On State Governance

The Third Plenary Session of the Eighteenth Central Committee of Chinese Communist Party proposed that the general goal of the comprehensive reform is to promote the modernization of state governance system and ability.As public finance is the basis and the important pillar of state governance,to build up modern public financial system is a significant symbol of establishing modern country.Being an important part of the state budget system,the state-owned capital operation budget(SCOB)is not only a government budget that the country as a capital owner draws and distributes the profit from state-owned capital operation,but also an important regime guarantee to realize the modern public financial system.Deepening the SCOB reform and improving SOCB management system are essential to promote the modernization of state governance system and ability.From function aspect SCOB is an important tool for government to draw recourse and an essential navigator to adjust state-owned economy and to promote the structure and allocation of state-owned capital.Personable SOCB regime arrangement can significantly reinforce budget management,allocate resources optimally,improve industry structure and help stateowned enterprise(SOEs)run better.Therefore,changes must begin from the strategic and macroscopic level by catching the main contradictions of Chinese reality,which satisfies the principle requirement of efficiency,transparency and predictability.The reform of the exiting SCOB system should focus on dealing with the relation between revenue and expenditure,the relation between government and market,the relation between government and SOEs,the relation between SOCB and other government budgets actively,and finally to share state-owned capital operational profit with all citizens.The theoretical value of this study lies in: firstly,treat SOCB as a content in state governance system,further clarify objectives of SOCB reform and its function orientation.Secondly,standing in the perspective of state governance,introduce middle term budget plan to annual budget to strengthen the self-regulation of budget regime,and perfect the relation between different government budgets.Thirdly,in order to realize the modernization of state governance system and ability,the SOCB system should be constructed by 5 parties,which are establishment,execution,reporting,performance appraisal and supervision.The practical value of this study lies in: Firstly,by designing reasonable budget system,it is helpful to improve current government budget system and promote the comprehensive budget management level.Secondly,by improving the SOCB revenue mechanism,it is helpful to enhance the country's ability to draw revenue and control macroeconomic.Thirdly,by optimizing the SOCB expenditure management,it is helpful to allocate and adjust state-owned capital,improve the market competitiveness of SOEs.This study has three parts,seven chapters,which are structured in “Theoretical Analysis—Empirical Analysis—Reform Design” logical path.The first three chapters are theoretical analysis,the forth and fifth chapters are empirical analysis,and the last two chapters are reform design.Chapter 1 describes research background and significance of this study,gives out the research approach,delimit the research scope and defines the core concepts.Chapter 2 is literature review.This part firstly summarizes previous viewpoint about the nature,coverage,positioning and hierarchy of budget compiling.Then,this part reviews previous studies about the relationship between state governance and modern public budget system.Furthermore,Chapter 2 also reviews foreign countries experiences on SOEs and capital budgeting.Based on literature review analysis,this study finds that current SOCB research on SOCB lack systemic research and integrated reform framework,and do not study SOCB reform from state governance view,which inspire this study.Chapter 3 is theoretical analysis on SOCB reform from state governance perspective.This part firstly introduces core concepts and evaluation standards of state governance.Thereafter,this part expounds why it is necessary to reform SOCB and important relationships involved during the reform process.Chapter 4 is empirical analysis on SOCB.This part describes the historical profitdistribution-regime changes and recent operation situations of SOEs.Then this chapter summarizes historical development,present compiling situation,implement achievements and existing problem.Based on current situation analysis,this study implements Different-inDifferent empirical model to examine the execution effect of SOCB regime.The result of empirical study shows that implementing such budget regime has positive effect on improving performance of SOEs operation,and increase profitability payout rate can reduce overinvestment effectively.It is necessary to reinforce the supervising effect of SOCB in SOEs operation and limit the management cost of SOEs.Chapter 5 is experience reference of foreign state capital management.This part describes historical state capital structure changes in western countries,SOEs management system in United States,France and Singapore,background and main forms of western capital budget.To draw lessons from western countries' experiences,our country should pay attention to the construction of legal system to ensure that state-owned capital reform is constrained by law.It is also worth to promote SOEs market-oriented operation,distribute state-owned capital earnings reasonably and build up effective supervision system.Chapter 6 is the overall design of SOCB reform.This part put forward the guiding ideology,basic principles,key points and main goals of SOCB reform,which are the basis for the next chapter to provide specific reform measures.Chapter 7 is about detailed procedures of SOCB reform.This chapter covers five stages of SOCB processes,including perfect budget establishment,reinforce budget execution,normalize budget report system,improve performance evaluation and strengthen budget supervision.Regarding to budget establishment aspect,this paper suggests to extend budget coverage,set up dynamic extraction mechanism of state-owned capital operation profit,refine expenditure categories,optimize revenues and expenditures structure,apply middle term budget plan,and manage SOCB transfer payment.Regarding to reinforcing budget execution aspect,this study recommends to perfect revenue execution by supervising SEOs,and to perfect expenditure execution by strengthen budget control.Regarding to normalizing budget report system aspect,it is necessary to set up Ministry of Finance—Central Budget Unit—SOEs reporting system,provide macroeconomic analysis about overall SOEs situation,construct the corresponding relationship between SOCB and SOEs' financial statement,reform the relationships between government budgets,and provide more detail information to public.Regarding to improving performance evaluation aspect,this article proposes to choose suitable methods of evaluation,build up reasonable index system for SOCB performance evaluation,and provide comprehensive performance analysis.Regarding to strengthening budget supervision aspect,this study advises to strengthen the fiduciary duty by establishing a supervision system combined with Internal Supervision—People's Congress Supervision—Administrative Supervision—Society Supervision.The possible innovation points of this study could be: firstly,design the dynamic extraction mechanism of state-owned capital operation profit,which is helpful to motivate SOEs' operation.Secondly,establish SOCB reporting system,clear the connections between different budget report forms,and reinforce institutional constraints of budget.Thirdly,apply Difference in Difference model to evaluate the effect of SOCB,which enriches related empirical research findings.