Improve Public Expenditure Management System Is Envisaged

Since China's Reform and Opening in 1978, especially after CPC's Third Plenary Meeting of the 14th Session, Chinese financial system has been injected with tremendous vitality for development, and established in a frame of public finance for the requirement of development of socialist market economy. However, British public financial system had been set up since 120 years ago, and had been widened to the rest developed European countries. Through discussion and research, a conclusion is: Public financial system is formed during the procedure of establishing governmental budget system which is the basic system of public finance. The characters of Governmental budget system are: Planning, Unity, Disclosures and LegalityPublic finance is a process of governmental management for arriving public aim, supplying public goods and satisfying public social requirements. Deputed by the public, Governments raise funds, called Public incomes, and arrange them, named Public expenditure, in the will of the public. The characters of public finance, which are represented in governmental budgets, are: public finance aims to supply public goods and services; it is finance for serving the public; it has a set of opening, clear, complete and high-effective budget management systems; it is legality and accords with the requirements of market economy. The characters determine that public expenditure must accord with the will of the public and be effective, and the expenditure management must be strengthened in order to maximize public profit.Nevertheless, in the past, our financial management always focused on the income management, and on the other hand, in the aspect of the expenditure management, problems coursed by the old system such as disorder of budgets, weak restrictions and low efficiencies of the expenditure had not been submitted to the agenda of reform. Moreover, expenditure waste and ineffective use of the fund have fully exposed holes of the expenditure management. The essence of public finance requires that our reforms should be operated without any concessions of ignoring the criterion of the public expenditure and the frame of public finance should not be slanted. The emphasis of Chinese finance management should be shifted onto the two aspects together from the single, especially onto the expenditure which is not only the point of finance management but also the key for building the public financial system.For solving the problems of"the lack of gross public expenditure","the improper composing of public expenditure","the low efficiency of expenditure"and"the lack of effective supervising and management"in the public expenditure, theorists have three views: first, how to define government functions?; Secondly, the security system; thirdly,...