Local Governments Administrative Cost Control System

With the deepening of the reform of government, administrative cost attacheshigh attention in government and widespread concern among theorists. In recent years,the growth of the administrative cost in China’s local government has been too fast,and the scale of it has been too large, which created a heavy financial burden, restrictthe growth of social wealth, made a bad influence on government image as well. Thereport at16th Party Congress put forward a new concept of “administrative cost” andrequirements that are uplift administrative efficiency and reduce costs so as to forman administrative system featuring standardized behaviors, coordinated operation,fairness and transparency, honesty and high efficiency. Therefore, the effectivecontrol of government administrative cost and the construction of economicalgovernment are the basic demand of “govern for the people” and inevitablerequirements for building a harmonious society.For the purpose of exploring the optimum governing path of administrativecost,on the foundation of transaction cost theory, entrust-agent theory and publicchoice theory,this article which based on the existing research results in domestic andexternal strives to expand the research thoughts and methods. It makes system asendogenous variable to discusses the basic solution of controlling local governmentadministrative cost, which use the methods of systemic analysis combining withquantitative and qualitative analysis, the tools of historical analysis combining withlogical inference, and the skills of inductive analysis combining with deductiveanalysis.On the structure, this thesis analyzed existing research results in domestic andexternal to determine the research thoughts, define the basic concepts ofadministrative cost and systems and to demonstrate measure indexes combined withtransaction cost under the new institutional economics. After that, data ofadministrative cost in Guizhou province were analyzed by longitudinal annual transverse provincial and the result is that the administrative cost of Guizhou provinceis on the high side. And use the related data from1995to2012about Guizhou toempirical test, and reached the conclusion that the two negative correlation, thenconfirmed the administrative of high cost control is necessary. After eliminating theparticularity in Guizhou, do universality analysis about the problems of the nationalregional administrative costs. This article makes an analysis in five systems whichhave an great influence in administrative cost from the perspective of, includingbudgetary system, civil servant system, official car system, administrative approvalsystem and government performance evaluation system and the influence made byadministrative culture from the view of informal institution.After deep analysis of the institutional factors, this paper takes an example bythe successful experience in controlling administrative costs of foreign government inorder to control it from system cause. From the perspective of formal system, themain paths are to strengthen the constraining of the current financial budget system,further improve the system of civil servants, vigorously foster the reform of officialcar system, perfect the administrative approval system and establish scientific andeffective system of government performance evaluation. From the side of informalsystems, the methods are to reshape the administrative culture and strengthen the costconsciousness.