Research On China’s Dynamic Supervision System Of Financial Budget Implementation

In the process of deepening the public budget reform, financial monitoring and management is the key to improve the efficiency of the public budget. With the developing socialist market economy, China’s public finance has realized the transition from "production-and-construction-type" to "democracy-and-rule-of-law type". So China government innovated financial monitoring and management system. The developed countries carried out the innovation of the systems and got a lot of experience, which we could use for reference. From2001, China has established centralized treasury collection and payment system, Standardizing fiscal revenue and expenditure behavior, and improving the efficiency of financial fund operation. Meanwhile, more and more illegal behavior of financial operation emerged. To solve this problem, Ministry of Finance established and popularized the Dynamic Supervision System of Financial Budget Implementation (DSSFBI). This paper has studied the current situation and existing problem of the dynamic supervision system, and provided some suggestion to perfect the system.Now the DSSFBI exists some problems, type of funds supervised low, lack of internal control, not close with the agent banks and so on. To solve these problems, many provinces took some exploration and formed many models. Shanxi province designed the supervision system to the tax revenue and nontax revenue and formulate the internal control regulation; Anhui province made innovation on supervision of finance authorized payment, and closed the cooperation between the fiscal department and the agent banks; Henan province established the Province-city-county supervision system; Heilongjiang province explored the distributed model and a perfect working system; Beijing employed an advanced data analyzing system. This paper summary these provinces’experience and tried to give some suggestion to perfect the DSSFBI.