A Research On Departmental Budget Reform In China

This paper conducts a research on improvement of departmental budgeting with purposes of enhancing the democratization and legalization of China's public budgeting and transparency in budget-making process.China has implemented the central departmental budgeting for over 6 years since 2000. However a cluster of issues still remains unclear, such as the explicit definition on departmental budgeting, acknowledgement of the core organization carrying out the departmental budgeting. Accordingly the paper starts with elaborating the definition and integrants of departmental budgeting as well as the different characteristics between departmental budgeting and traditional budget making, based on which summaries the fundamental questions should be included in the departmental budgeting process. Analyses of flaws in the existing departmental budget making process and case study on the failure of departmental budgeting reform compose the second part of this paper, following which the author proposes advices and suggestions on improving departmental budgeting with a comprehensive study of successful experiences of departmental budgeting in China and other countries. The discussion attaches great importance on the improving scheme in departmental budgeting since it is believed that a feasible solution plan is more crucial in practical budget making. In a view of that, the author clarifies the idea of drafting rational budgeting items, budget-making process and techniques according to the principles of democratization, legalization and transparency enhancement, which will be substantial in further promoting the departmental budgeting in China.