China's Military Budget Compilation Method Of The Study

Budget composing is an important part of budget management, and determines in a significant extent the cost-return and cost-effectiveness of public departments. Army budget composing, as a part of the state fiscal budget composing, is no exception. Due to the drawbacks of the incremental budgeting currently adopted in army budget composing, a budgeting reform program was promulgated in 2001, which requires the implementation within five years of a new budget composing method with zero-base budgeting (ZBB) as the core. There shall be a wide range of issues calling for study during this process, both theoretically and practically, and a large amount of work has to be done, e.g. the disjoining between annual fiscal budgeting and medium and long-term planning.In its study on military funds budget composing methods, the study combines theories with practice, standardized analysis with positivistic analysis, borrowings and actual conditions of China and its army.This thesis probes into the adjustment of the functions of the budget composing system, and the operation techniques of budget composing establishments, which are not deeply studied in current reform policies. Its purpose is to analyze the defects of the original management system, to explore into innovative military budget composing techniques in line with the reform guidelines of the state fiscal budget composing and military budget composing based on domestic and foreign experience in budget composing. It aims at providing some beneficial advice and proposal to push forward the reform of the military budget composing.The six chapters of this paper can be divided into the following four parts:Firstly a general theoretical analysis is given on budget, governmental budget, efficiency of budget, the nature of military budget based on control theories, system theories, financial theories, public commodity theories and efficiency theories. Descriptions, analysis, assessment and comparisons have been given on the current base budgeting approach, zero-base budgeting approach to be adopted after the reform, and the more scientific and rational Program Planning and Budgeting System (PPBS).Following this, an evolution of the military budget management is given to demonstrate the interactive relationship between budget composing techniques and funds management systems, and for understanding of the history of the current budget management system. Its purpose is to provide an overall understanding of the budget composing methods used in the army.Then it discusses the mature theories and effective management approaches of western countries from which we may draw experiences or borrow ways of practice. And the experience and lessons learnt from reforms on state budgeting, especially extended application of the ZBB method, which started earlier'in 1990s, are studied. Compared to government budgeting, military funds budgeting and management has its own characteristics and laws. Especially worth mentioning is the PPBS system of the army of the USA developed after World War II. It has been playing a vital role in the resolving the disjoining between budgeting and planning.Finally strategies and suggestions are put forth on improving military budget composing, specifically the importance to resolve the disjoining between budgeting and planning; deepened understanding of zero-base budgeting; and the establishment oi internal and external environments for reforms on budget composing.