Causes And Countermeasures Of The Soft Budget Constraint Problem

The government's budget is the core of financial activities, strict implementation of the budget is the basic requirement of fiscal discipline. In practice, however, a lot of serious soft budget constraint problem exist in the process of budget management. According the laws of history, theory and reality required conditions, the paper argues that solving soft budget constraint problem is the important and urgent thing of current budget management reform. It is meaningful to discusses the causes and countermeasures of the soft budget constraint problem in depth.These theories deepen people's understanding various economic phenomenon during the transition of China,and also deepen the understanding of the effectiveness of government financial resources.However, previous studies on the soft budget constraint place emphasis on the formation mechanism of enterprise soft budget constraint, and discusses whether the financial control should be China's current direction of budget reform. However, the causes of soft budget constraint and the specific countermeasures have not yet form relatively mature theories.This paper, institutional economics and public choice theory as the main theoretical framework, supported by the necessary political science, sociology, history, philosophy theory, using qualitative research method and analytical narrative method, describes the soft budget constraint problems and characteristics of the various performance, analyzes the historical and practical reasons of soft budget constraint problems, suggests a number of management proposals to solve this problem, forms a more systematic and comprehensive framework. However, it's difficulty to collect or even impossible to collect real system data in China's current budget areas, so the quantitative analysis and empirical analysis about china's budget has yet to be further research in the future.This article is divided into four parts:the first part discusses the necessary of solving the soft budget constraint problem, and introduces the theoretical background and scholars' research results about the soft budget constraint problem. The second part describes the soft budget constraint problem by analyzing the form and characteristics of the soft budget constraint performance.At the same time, this part give a in-depth analysis of the negative impact of soft budget constraint on budget execution order, market competition, and political civilization.The third part discusses the historical reasons from economic, political and cultural three aspects, discusses practical reasons from institutional, political and interests three aspects. The fourth part based on the reasons of the soft budget constraint problem in the third part, according to China's national conditions, Proposes the specific countermeasures to solve soft budget constraint problem.