Solution To Improve Departmental Budgeting Reform In China

The procedure of marketing economy in western countries indicates that budgeting of government is the basic form of public finance .Western public finance developed during the procedure of shaping and developing of budgeting of government which restrained and affected public finance . Therefore , it is the key to reform the budgeting of government to establish the public fiance model in China .Financial departments in all levels have been taking budgeting reform since 2000 . It has brought about a complete change in budgeting of government and played a positive role in establishing public finance system and perfecting marketing economy . The reform of budgeting which leads to redistribution between financial power and financial resources of governments , affects some governments' gained interests directly , so it is impeded seriously since the beginning . The difficulty has indicated that it has affected directly the deep contradiction of traditional systems in China .It is significant for public finance reform in China to analyse current departmental budgeting ,seek problems and perfect solutions .The issues in current departmental budgeting in China are analysed carefully in this text. It reveals six problems : governmental softness by law ; contradiction of financial resources and financial power ; scope of financial supply ; difficulty of quantity definition ; lagging of presentation approach ; lack of including . It states the theoretical foundation of departmental budgeting reform in the characteristic of finance -public and the financial relations between governmental departments . Considering conditions in China and overseas , especially the practice of governmental budgeting management in European and American countries ,it raises advice in improving budgeting reform in China . In this text ,it reveals that to further improvement of budgeting reform ,it needs to advance the establishment of government by law in order to eliminate the arbitrary and artificial factors ; to optimize the budgeting system continuously in content in order to establish a scientific and reasonable budgeting system ; to perfect all basic work of budgeting in practice in order to replenish basic work of budgeting .What's more , it also reveals that in the procedure of advancing departmental budgeting ,it should apply the evaluation of expenditure and effectiveness and accelerate the implementing of relative regulations and measures of reform .