Reflection On Establishing And Perfecting The State's Financial Supervisory System

Along with the establishment of the State's Market EconomicSystem, the Public Finance basing on the economy is also underconstruction. In the Macro-Regulation and Economic Development,the role that finance plays is becoming ever significantly important.Through the activities of keeping economy in good order andstrengthening Financial Management, Financial Supervision in theascendant in the System of Financial Management has proved itselfa major resort. Financial Supervision specifically monitors overthe flow of financial capital and the effect of the flow. In order torealize Financial Management, the System of Financial Supervisionis built to regulate the main body activities of finance. The mainfunction of Financial Supervision rests in revealing and correctingthe deviation in the performance of budget and in securing financialallocation scientifically, correctly and effectively. Consequently, itis clear that Financial Supervision Functions irreplaceably in theState Financial Management and in the supervision for the State'sEconomy. Establishing and perfecting the State's FinancialSupervisory System is not only for the purpose of materializing theoutlook of scientific development universally, for the purpose ofregulating the market economy to bring out a healthy development,for the purpose of boosting the construction of a harmonious society,it is also for the purpose of reinforcing the Public FinancialManagement substantially, for the purpose of speeding up theconstruction of the Public Financial System, for the purpose ofmaking full use of Financial Function, and for the purpose ofboosting the renovation in the existing System of FinancialManagement. Our country is at a transition period, there are issuesin the work of Financial Supervision such as nonstandardapproaches, direct inspection failing for supervisions beforehandand afterward, excessive micro scope supervision, lacking objectivereferential system for assessing achievements, imperfect FinancialSupervision System, significantly backward legislation, pullingpunches in prosecution, discordant with the economic developmentof the socialist market and with financial renovation. In short,establishing and perfecting the new system for FinancialSupervision is a must.To establish a Financial Supervisory System suitable formarket economy involves multiple aspects of institutional creations,preliminary work to start with are as follows: Reinforcing theestablishment of Legislative System, set up and accomplish thesystem for supervision and control;Build and complete a newsystem -aiming to meet the requirements of Public FinancialManagement, establish a system covering income and expenses offinance in multi-layers and every direction and the establishedsystem being featured with prior participation in FinancialManagement for precaution, follow-up for prevention and feedbackchecking after finishing supervision;Taking advantage of thecomprehensive function of Financial Supervisory System and usingthe experience from French, propose to establish a system under themacro supervision by the National People's Congress, the dailysupervision by Financial Department, the afterward supervision byAudit Department, all of which secures supervisions in everydirection throughout the whole supervisory course;Building upsupervision over Financial Expenses to balance excessivesupervision on income and making the significance of supervisionon expenses well comprehended, bring substantial improvement tothe loose and inefficient control over the expenses to prevent theoccurrences such as doctoring bills, extravagance and waste, oreven cases like abusing and grafting the state's assets;Intackling issues arising out of supervisory work, making sure that thepersistence of lawful administration not only prosecutes thosecompanies that violate relating laws but also prosecutes theinvolved company directors, guard the sanctity of the financialsupervision with legislative means, going by the principle ofprosecution that is applicable to both issues and responsible personsto bring out supervision and its effect. Through making full use ofmodernized information technology, launching specific financialinspection and daily supervision by developing software andcomputer network, establish a sensitive feed back system forfinancial supervision. Set up test data and case bank for financialsupervision to collect and store the operation information forenterprises, institutions and companies and to make financial databeing shared;Universally reinforce the construction of supervisionteam to enhance the professional quality of the financialsupervisory staff.