China's Central Government Departments Budgeting Reform Study

With further development of market economy in China and establishment of public financial frame, the traditional budget management system has not adapted the demands of new situation and development. It is a historically necessary choice to carry out the Agency budget reform. The reform of the fiscal expenditure system, in which the department budget reform is the core, the treasury single account, the government procurement system and the "income and payout separately" are the important, has been performed in the round since 2000. Agency budget reform is very important for building up the framework of public finance system, which is the big decision from the Central Committee Of the CCP and State Council and also is the other system innovation since the tax-sharing fiscal system reform in 1994.This article emphasizes on the study of central Agency budget reform, to expatiate the basic theory and international experiences on the Agency budget, to analyze the current situation and shortage of the traditional budget preparation system, to bring forward the internal inevitability of this reform. Through summarizing the five-year' s experiences on the central Agency budget reform, it will discuss the meaning and performance of the Agency budget reform and probe into the direction of further deepening the reform based on the analysis of existing problem.The whole article include five parts.The first part summarizes the basic theory of Agency budget. Agency budget is the Comprehensive fiscal plan covering all items of Agency's revenue and expenditure, which is composed by the budget units on the grass roots, reported, audited and collected from low level to up-level step by Step, finally audited by the finance sector and submitted to the legislation body for approving, The meaning of Agency budget can be understood from the principal, content, method, procedure and law effectiveness of budget preparation. Agency budget has characters of integrity, veracity validity and complicity. Being the way of specifying budget and regulating budget administration, Agency budget is different with the traditional function budget, such as the classification basis of the budget preparation, the method of budget administration, the degree of specification, etc.The second part introduces the international experiences on budget preparation. Agency budget is the popular way for all developed and most developing countries. For example, U.S., French, Sweden, Canada and etc, their budget preparation has their own procedure and characters because their political system and fiscal administration framework is different, they still have some common characters, which are worth being studied by us, such as the attention on the forecast of economy and fiscal situation, long cycle of budget preparation, scrolling budget andzero-base budget.The third part analyzes the background of central Agency budget reform. The traditional budget preparation system has shortages on the organization agencies, operating mechanism, time limit, procedure, range and methods, that can not be meet the requirement of market economy on the transfer functions of public finance and need to be fully reformed. It is necessary to improve the budget preparation system, perform Agency budget for building up the socialist market economy system, administrating the country on law, strengthening the budget management. The direct motive of reforming central Agency budget is the audit conclusion from the Bureau of Audit and the requirement of People' s Congress.The fourth part describes the advance and evaluation of central Agency budget reform. Central Agency budget includes general budget and fund budget. The design consistent with budget draft submission to the People' s Congress. Budget requires a Agency to compile budget, which embody Agency' s all revenue and expenditure according to rules and formats. Implementing central Agency budget reform takes great significance and profound effect for fulfilling legal administration, legal execution and legal distribution fund an...