Research On Mandated Expenditure Of County Budget

At present, various of problems lie in the mandated expenditure of county budget, suchas construction item with national debts is lacking in benefit, the local matchingexpenditure is short or illusory, the special fund is often appropriated. These problemsare often mentioned in newspaper, on broadcast and on television. But there is fewspecialized and systemic research on that problem. Through this paper the writer tries tofind the content, development of the mandated expenditure, the reason why there are somany problems and how to solve them. This is the original intention why the writerwant to write it,and also something creative the paper want to show.The logical structure of this paper is as followed:In chapter one,the writer derives the concept of the mandated expenditure through threenews reports. The mandated expenditure includes mandated increasing expenditure andmandated matching expenditure. The mandated increasing expenditure mainly includesagriculture expenditure, education expenditure and science and research expenditure.The mandated matching expenditure mainly consists of integrated exploitation onagriculture, loan from WB and foreign governments, construction item with nationaldebts, commissariat risk fund, etc. Then,the paper enumerates three kinds of problemsin mandated expenditure, that is problem on the amount, the structure and the effect ofthe mandated expenditure. Third, the paper describes the mandated expenditure' presentcondition and scales of Hengshui city, pointing out the mandated expenditure' hugescale and rigid increase will influence other kind of public expenditure and the budgetequilibrium condition, which in this text are called two effects, namely "the extrudeeffect" and "the deficit effect". To analyze the function mechanism of these two effects,this paper uses the sketch, data sheet and the math models.Chapter two, based on data of Hengshui city, the text looks back the history anddevelopment of the mandated expenditure completely. The whole stage is divided intothree stages: the original stage, the enhancing stage and the expending stage. The paperfinds that there are two main lines around which the mandated expenditure expends.Finally the writer points out that the amount and field of the mandated expenditure isstill growing and expanding. To prove it, the paper enumerates three examples.In chapter 3, taking the efficiency and equality as the core of the expenditure analysis,the paper takes a research on the essence and source of the mandated expenditurethrough four layers. The first layer is to define the relation between government andmarket, the text points out the main work of the government should be the publicexpenditure and the business which market does not wish to do or is not able to do;Thesecond layer is to define the relationship of the inter-government, the paper points outthat the two basic principles according as which the expenditure is divided betweengovernments should be the benefit principle and ability principle;The third layerevaluates the fair condition of the mandated expenditure, points out that current rule ofthe mandated expenditure is obvious unfair to the poor region and forbids thedevelopment of these regions;The fourth layer is about the efficiency of the relateddepartments of the mandated expenditure, namely the budget efficiency and the decisionefficiency. At each end of these four layers, the writer describes the actual condition ofHengshui city. Through the analysis of four layers, this text gets the conclusion: for nothandling well the relation between the government and the market or the relation ofinter-government, the mandated expenditure is inefficient in macrostructure;for lackingscientific methods of the budget and decision, the mandated expenditure is inefficiencyin microstructure;for lacking the consideration of the local financial power difference,the mandated expenditure is unfair. Among them, the pivotal element is the relationshipof governments, or how to divide the power between superior and inferior governments.Chapter 4, using the Chinese and Foreign fulfillment and related theories for reference,this text puts forward suggestions to solve the problem: first, the main expenditurefields of each administrative level should be defined in constitution or the law form, inorder to avoid confusion in expenditure division;second, the current finance systemshould be perfected, including the foundation of local tax system, giving the local powerto make tax policy, perfection of inter-governmental transfer and pay system , andvarious kinds of revenue outside taxes;the third part is about the instruction withoutsupport from superior government, some measures should be taken to prevent thiscondition to occur;the fourth part is that more scientific plan and supervision methodsshould be adopted to make the mandated expenditure more efficient.Finally, the thesis puts forward some measures outside public finance to resolve themandated expenditure problem. These measures include the public participation andsocial supervision, more reasonable job definition between related sections, morescientific system to evaluate achievements of local government, and the appropriateadministrative level.