Research On Social Security Budget Of China In The Perspective Of Public Finance

The aim of public finance is to supply public products and public services, andthen makes up the “market failure” so as to promote its sustained and healthydevelopment. As the “safety valve” and” shock absorber” of social development andeconomical operation, social security has great positive externality. And it is oneelement of the government’s public finance system. However, the inadequate of socialsecurity management is restricting the work of social security in our country anddirectly leading to the social security system laging behind the requirement of theoverall public finance system and social economic development. So it is imminent toestablish social security to strengthen the management of social security funds andpromote the construction of social security system.This article takes public finance as the basic perspectives, and then it illustratesthe necessity of establishing China’s social security budget relying on public goodstheory, equity and efficiency theory, principal-agent theory. Based on the researchabout social security funds and its management, it points out that China’s socialsecurity budget mode is “modular”, and it has some shortcomings at the same time:thefund balance of its income and payments is fuzzy, the management cycle is short, thebudget execution is dreadful and management responsibility is unclear. According tothe experience of the practice in foreign countries, the article， following theguidelines and principles of establishing social security budget, designs China’s socialsecurity budget. It puts forward some innovative ideas about our social securitybudget：it should be a package-rolling budget; its annual should be carrying over tothe next year; its cycle is24months; the methods of preliminary design is continuousbudgeting. And the income should be designed by its origintion while the expense byits specific purpose. And the tables and process management have also been designed.At last, it brings forward some measures that we can improve the poor conditionsabout the establishment of our social security budget, such as perfect thegovernment’s budget system; build a stable revenue streams; improve the budgetmanagement system; strengthen the building of the legal system; promote thedevelopment of social security and so on.