A Study On China’s Government Full-covered Budget Supervision

Along with the continuous development of socialist market economy with Chinese characteristics and the gradual promotion of the government budget reform process, full-covered budget and budget supervision tend to be richer and more perfect gradually. As a concept with Chinese characteristics, “Full-Covered Budget Supervision” is the product of development of socialist market economy with Chinese characteristics. From the “full-covered budget management” thought first introduced at the Third Plenary Session of its Sixteenth Central Committee to “strengthen full-covered budget audit and supervision” proposed at 18 th CPC National Congress, then to the overhaul of Budget law for the first time in 20 years, China’s government budget management reform steadily. Its general goal is to realize full-covered budget management reform. Today, the reform has lasted for more than ten years and it has achieved some effects. But also there are some problems to be solved. In this paper, government full-covered budget supervision as a starting point, we demonstrate the importance and necessity of full-covered budget supervision through the public choice theory and the principal-agent theory. By instructing the present situation and problems of full-covered budget supervision and analyzing the causes of problems, then drawing lessons from foreign rich budget supervision experience, we put forward the countermeasures and suggestions to strengthen government full-covered budget supervision.The thesis is divided into five parts:Part I: Introduction. This part introduces the background and significance, literature review, main content and methods, innovation and deficiency.Part II: Full-covered budget theory. This part expounds the connotation and basic principle of full-covered budget supervision. From studying the public choice theory and the principal-agent theory, it also expounded the importance and necessity of full-covered budget supervision.Part III: Present situation, problems and reasons of full-covered budget supervision in China. This part states the present situation of full-covered budget supervision in current China, analyzes the problems existing in every supervision step, such as budgeting, examining and approving, executing, final accounting etc. Besides that, it also explores the causes of these problems.Part IV: Research of foreign experience about full-covered budget supervision. This part introduces the budget supervision of American and Japan. Through learning from their experience, we guide the implementation of our government full-covered budget supervision.Part V: Policy choice to strengthen our country’s full-covered budget supervision.