Research In The Reform Of Department Budget

We began to try out department budget in some provinces since 2000.After three years, more and more provinces have been put into the reform. Department budget has became the trend of our budget. But there are still many questions to be resolved. This paper will focus on them.Section 1 reviews the background of the reform and the problems exposed in the reform, then sketches the direction of this paper. Section 2 discusses the reasons of the reform. The analysis on department budget's function shows us the importance of the reform, while the analysis based on politics raises up the key of this reform is to build a good environmental system. In order to know more about what is a perfect department budget, section 3 introduces some successful reforms carried out in the developed countries. Section 4 is the most important part of this paper . In this section we bring forward some measures that can be used to increase the efficiency of department budget, such as to use inspiring-restricted approach to resolve the principal-agent problem. Also the measures are involved with the innovation of the organizations, government-stock system and the laws.