Some Thoughts On The Perfect Of Dongguan's Financial Expenditure Administration

In the past few years, Dongguan City's local financial income increased greatly in successive years. However, the conflict between income and expenses still stands out. One of the important reasons is that the reform of financial expense control stayed behind, i.e. the methods of expense control still follow the traditional model adopted in the past planned economy. Although the Finance Department of Dongguan has done a lot to enhance the expense control and improve the efficiency of financial expenditure which had led to remarkable achievement, many problems still exist. Problem One: The expenditure range is unclear. It's obvious that Dongguan's financial supply is too broad and undertakes too much. At the same time of transforming the government function and clarifying each level's financial administrative authority, it's necessary to peel off those micro-economic activities that uncontrollable or should not be managed by the governmental financial agencies from the range of financial supply and leave them to the market so that the local financial expenditure range can be re-clarified. Problem Two: The structure of income and expenses is not entirely rational. Although the economic construction portion decreased, it still occupies a large part. The total social welfare expenditure is insufficient and not thorough. The spending on social culture/education and medical/sanitary treatment needs to be enlarged. Problem Three: The expenditure is inefficient. Speaking of the construction spending, one common case is the budget of infrastructure project being either over or under estimated which leads to acquiring financial supply in the very beginning and overlapping budget during construction. The other is the government financial investment leaked out seriously instead of becoming fixed assets as a whole. Problem Four: The control and supervising of expenditure are weak. First of all, the expenditure budget was not scientifically edited. Secondly, the follow up on the financial spending process is weak, insufficient, shallow and not strict enough. Some governmental financial fund was not utilized properly or spent at extremely high standard which resulted in severe waste. Problem Five: The index of expenditure is too broad. One one hand, the laws of education, science, agriculture and regulations of sanitation, birth control, environmental protection, cultural publication all set restrictions on financial expenditure by requiring the increase of any of these items to be higher than that of financial income or expenses. On the other hand, the Law of Budget requires both ends meet and all factors being considered when editing the budget. Problem Six: There is great difference between each town's financial capability. As each town holds different financial capability and spending level per capita, the financial income gap between towns is still significant. Take education for instance, as education units at town and village levels are heavily burdened, some less-developed regions fail to invest enough funds on education which resulted in the unbalance of education development across the city. The education quality in some towns is not high enough which holds back the entire city's educational development. The control over financial expenses does not only determine the overall financial administration level, but also restricts the reform effect and financial performance. Therefore, to improve the quality and level of the financial expense control has become a critical aspect for the prosperity of Dongguan's finance situation, as well as a key factor affecting the economy and financial function system. This must be highly recognized. The reasons for the lasting neglect of financial expenses control can be analyzed from two aspects-theoretical deflection and system problem. First of all, on finance theoretical research and spread, there has been a lasting tendency of stressing more on income and profit generating than expenses and spending. The financial income research neglecting spending domino effect and the profit generating analysis neglecting proper way of expenditure cannot achieve valuable results which dissevers the train of financial administration and leads to distortion and ignorance in the relevant research. Secondly, the traditional economical administration system and itsfunctioning model with axes of highly centralized dictatorial planning and practicality economical index has formed the so called finance guarantee system with "the planning ministry deciding the base and the financial department spending the money", the "passive-following"financial resource allocation model and the malpractices of replacing administrating with planning at large and "big boiler meal"and weak budget control in details. All these seriously affected the independence and positivity of financial administration which also put the space, flexibility, demand and validity of financial administration in big questions. Since the reform and opening, under the conditions of lump-work financial system or transiting financial system, due to many economic relations being unclarified, finance allocation methods and structures under construction and financial systems to be consolidated, cleaned up or rebuilt, China's financial administration is short of the essential systematical environment and conditions. There is no way but to walk out of the theoretical shadow of ignoring financial administration and rebuild and correct relevant theoretical principles so as to reconstruct and enhance the right direction and necessary attention of the financial administration in new trend. Meanwhile, it is necessary to reinforce China's finance and taxation system, as well as standardize and stabilize it, which is the key factor for rebuilding, accelerating and enhancing China's financial administration. All these problems currently discovered in Dongguan's financial expenses and control were leftover from the planed economic system and accumulated during the transit from the old system to the new one. To resolve these problems, we can only follow the development demand of the socialism market economy by strengthening nomocracy, improving system, consolidating mechanism, and in the end, increasing reform force and improving financing level. Firstly, adjust the range of governmental finance supply and optimize the spending structure. A) Support industrial structure modulation, optimize industrial layout and promote the development of high-tech industries. B) Enhance the force of eliminating poverty, help less-developed areas to improve the basic living and production conditions, strengthen the economic...