Research On Government Budget Supervision

With the rapid development of market economy, China has achieved amazing success in modernization. Under such circumstances, China's financial system has dramatically changed after the emperor's fiance in feudal society and the state's finance in planned economy period. And public finance is beginning. Public finance in socialist market economy, as an existing form of finance, represents China's more democratic and legal financial system; It is also the orientation of China's financial reform.Public finance is supposed to provide public service for market economy as a kind of government distribution; it is an existing form of state finance in accordance with market economy. Specifically speaking, public finance is a working pattern of government's incomes and expenses under the circumstances of market economy which aims to meet public needs. It is a kind of finance in which the state, as the governor of the society and the economy, takes money and spend it in the form of the government's public activities expenses so as to provide public goods and services, to secure the normally operating of the state machine, to secure the security of the state, to maintain social rules and to realize of the harmonious development of the society and the economy. In the period of socialist economy, public fiancéhas four basic characteristics: commonality, equality, commonweal and law abiding.Although the essence and the sole purpose of public finance is to meet public needs, the government may deviate from the essence of it and cause the low efficiency and waste of public budget owing to government's seeking for their own benefit. To solve this problem, we need to establish a whole set of financial supervision which is supposed to be scientific and effective in order to restrict the government's deeds. Budget supervision as a vial part of finance supervising, it is vital and indispensable in restricting government's actions, improving its budget performance, establishing socialist public finance profile and a harmonious socialist society.This paper has adopted the method of comparison to analyze China's government supervision institutions. It combines the developed countries' advanced experiences in this area and China's current situation, trying to build up a set of relatively perfect government budget supervision institutions.This paper includes five parts. The first part is the introduction part. During this part, the author has mainly explained the cause and meaning of this study, the current studying situation both in and out of China, the method used in this study and what makes this paper creative. The second part mainly concerns with the theoretical base of supervision, including the Principal-agent Theory, the Bureaucratic-behavours Theory and the Power Constriction Theory. In the third part, the author has probed into the origin of budget supervision, the features of foreign countries' budget supervision development and the inspirations it has given us and has also summarized the advanced experiences of these foreign countries' budget supervision institutions , including Germany. France, South Korea and Brazil. In the forth part, the author has analyzed the profile, the operating mechanism of China's current budget supervision institutions and its merits and demerits by digging into China's current budget supervision mechanism and institutions. The fifth part is also the last part. In this last part, the author has put forward some constructive advices on improving China's budget supervision's system, its contents, its operating mechanism, its methods and the relative laws so as to solve the problems existing in China's current budget supervision.Tow things make this study creative. First, it has given an in-depth study about the process and the features of Western countries government budget supervision. Second, Instead of confining to any single aspect of government budget supervision, it has done a thorough and all-round study about China's government budget supervision and managed to establish a relatively perfect set of government budget supervision based on the advanced experiences of foreign countries which is to adapt to the public finance under the circumstances of socialist market economy.