A Study On Implementation Of The New Budget Law

China started implementing the newly revised Budget Law of the People’ s Republic of China (hereinafter referred to as the new Budget Law) in 2015. This law proposed to improve Chinese transfer payment system, promote the balancing mechanism of multi-year budgeting and build a full-caliber budget system. Since implementation of the new Budget Law, the government budget work has been improved. For example, depending on the full-caliber budgeting, the special account for extra-budgetary revenue was revoked. In this way, budgeting can show the government budget information more comprehensively and more promptly. However, new situations and new problems came into being. This thesis took Yanbian Korean Autonomous Prefecture (hereinafter referred to as Yanbian Prefecture) as an example to further study on new problems emerged since implementation of the new Budget Law.This thesis is composed of five parts. Part 1 is introduction. In this part, the author elaborated background and meaning of the topic as well as the range of research and research methods. Part 2 is an overview of government budget. The author firstly introduced the definition of government budget and its four characteristics, namely normalization, macro regulation, transparency and annual planning; secondly, the author briefly introduced creating and revision history of Budget Law of the People’s Republic of China. In addition, the author introduced the government budget legislation process of Yanbian Prefecture. In Part 3, the author elaborated the three main issues related to government budget revised in Budget Law this time and analyzed their positive effects. The three issues are improving the transfer payment system, establishing the balancing mechanism for multi-year budgeting and establishing the full-caliber budget system. Part 4 is a case study. The author took Yanbian Prefecture as an example and analyzed new problems have emerged since the prefecture implemented the new Budget Law based on its 2015 budget and budget implementation situation. The problems include low disclosure degree of the content of transfer payment, no continuous items shown in the budget and unreasonable composition of public finance budget revenue. Furthermore, the author analyzed the legal causes. After a theoretical study on legislation and analysis on practical application, the author summarized three legal causes, lack of legal rules regulating the transfer payment system, cash basis accounting system being lagged behind by the existing budget system and no independent management system for the special account of nontax revenue. Part 5 is the most important part. Based on the legal causes of new problems proposed in Part 4, the author held that the new problems are caused by defective implementation system for the new Budget Law, and then suggested to improve the implementation system. The suggestions are establishing transfer payment fund, improving legislation on transfer payment, carrying out accrual basis accounting system, etc.The author recognized the great progress of the new Budget Law on legislation and its positive influence on Chinese government budget. With acceleration of course of government by law, China’s legislation on budgeting has been gradually improved. However, the supporting implementation system was lagged behind. In the implementation process of the new Budget Law, there are obstacles. This thesis proposed to improve the supporting system relevant to government budget in order to make the new Budget Law being implemented more efficiently.