Research On The Extra-budgetary Fund Of China

Extra-budgetary fund, existing out of the national regular budget plan, features in its different and separated resources, its difficulty in supervising and calculating. It can easily lead to corruption in finance and affects the national revenue balance to a large extent. This situation has become from bad to worse since 90s of last centaury. It reflects essentially the profit conflicts between central and local governments. This paper briefly explains the characteristics of the present extra-budgetary fund in China, its causes and impacts upon the existing budget management system, and accordingly provides some possible solutions to it.