The Study Of Prefecture-level Department Budget Reform

Since late1990s, Ministry of Finance has launched fiscal expenditure administration system reforms featuring department-specific budgets, which are able to clearly and comprehensively reflect the fiscal revenues and expenditures of government departments of all levels,thus adapt to the improving govermental functions under China’s socialist market economy. After more than ten years of continuous reform,the deparrment-specific budgets have attracted nationwide attention.In recent years, according to the concept of scientific development and the requirement of building socialistic harmonious society, Finance authorities at various levels in Dongying City have actively taken measures on the reform of departmental budget management, and made great efforts to adjust and optimize financial expenditure structure continuously, focus on speeding up the implementation of departmental budget, raising the level of budgetary oversight and performance management effectively, achievements have been made in strengthen financial management scientific and refine.The present paper briefly introduces the basic concept, feature and theoretical basis of departmental budget reform, and it discusses the difference between departmental budget and traditional budget. It deeply analyzes the current situation, effect and deficiencies of departmental budget reform in Dongying city. Moreover, it pertinently puts forward several issues involved in the reform Process. Meanwhile it draws lessons from all successful and valuable advises. It provides several pieces of suggestions for Dongying city in order to improve its management system of departmental budget and play to the functions of public finance.