Our Financial Budget Management System "Paradox"

budget management system is a system that the government at all levels participate in national income distribution and plan to organize financial allocation,that is,congress and people congress to consider, implement the projects examined, and take charge of capital operation process, finally forms final report.This process is to achieve Nash equilibrium among the voters, interest groups, politicians and officials, they trade for public financial resources as object. However, from the national budget management situation, Nash equilibrium is not the norm.Take the China for example, fiscal expenditure are greater than fiscal revenue during the 17 years from 1992-2008, According to that Granger inspection, increasing the fiscal expenditureit is not convenient finance income increase. Although our country GDP speed increase by 10% every year, the growth of excessive here excessive to rely on investment pull, not domestic demand pull.Public finance theory tell us that since the existence of market failure condition, it must rely on market power to compensate for the blank of public products that no one brought to satisfy the public demand because of the market failure, the power outside of market is government power. And the field that government provide public products is limited to the field of public service domain, to ensure that the government do not get beyond this field, we must draw clear boundaries for that government provide public products range. Financial budget system is set. up for the boundaries. Through the excel software and JMTJFX concise statistical analysis software calculate, whether from financial revenue and expenditure variance or financial revenue and expenditure growth elasticity coefficient, our fiscal expenditure growth faster than fiscal revenue from 1992 to 2008, which is not conducive to economic good development and contrary to the budget's purpose, thus forming our budget management system "paradox" problem.Financial budget system is a social security system that the function of the government is fully exerted to remedy the market economic system and the deficiency of income redistribution to narrow the gap between rich and poor areas and mixed dual-economic structure for making up for a sound social security system.Granger inspection for financial budget system gives empirical support. Inspection results show that increasing the fiscal expenditureit is not convenient finance income increase and the increase in revenue growth and fiscal spending growth does not exist two-way causality, fiscal revenue growth will promote the growth of fiscal expenditure increases, but the improvement of financial expenditure growth is not conducive to improve fiscal revenue growth. While Lindbergh-levy LiWeiPu theorem and the theoretical derivation show panov theorem,the profit of revenue budget resources choice is three quarters in fully democratic conditions, when in the rigid right the profit of revenue budget resources choice is about one-quarter, it shows that the instruction policy that government implement alone and economic development in anarchy both cant reach optimal pareto state.Therefore, both theoretical derivation or empirical analysis show that institutional "paradox" problem exist in our budget management, in order to effectively improve this defect, the government can really do not "offside" and not "absence", and should Should market-based and administrative services, fully play the role of democracy, Perform duties of public finance; Simultaneously we must increase the role of National People's Congress in the budget law, give people the real power, break " system within supervision " and form power and interest in balance; The third is reform the budget mode, introducing the performance evaluation system; The fourth is cultivating and developing budget market that similar to accounting association to solve the CPPCC members in budget deliberations difficulties;The fifth is establish and standard evaluation system of fiscal expenditure, by evaluating economic benefits and social benefit that financial expenditure produce, summarize unceasingly financial expenditure management experience to provide reliable reference for improving fiscal investment decision-making level. The sixth is financial expenditure management system should introduce performance mechanism. The seventh is to establish a cross-regional revenue sharing system; The eighth is introducing the news media involved in supervision, let budget resources aeration in the sunshine, execute sunshine policy, all of these improve quality of budget and improve the budget management system.