Research On Budget-based Management Of State-Owned Assets Of Government Institutions

Management of State-owned Assets (SOA) is a general process of utilization, control, monitoring and evaluation on all assets owned by the public, which in general covers the its ownership, deployment, utilization, earnings and disposal. While Budget Management (usually refers to the management of public budget), in a narrow sense, means the government departments and institutions’planning, based on legislation authorization, of all public income and expenses, and its implementation and decision-making thereafter. Therefore, Management of SOA in budgetary public institutions includes both the Management of State-owned Assets and the Management of Budget. In the context of budget system reforming, the management of SOA is a process to finally maximize the efficiency of public resources, through maintaining current management system, centering on efficiency, increasing the initiative of government institutions, improving the utilization rate of the huge amount of SOA, and promoting the cost accounting and quality of public services.The Interim Measures for the management of state-owned assets of Government Departments and The Interim Measures for the management of state-owned assets of Government Institutions issued by the Ministry of Finance2006requires the integration of Asset Management and Budget Management in government departments and institutions. As the reform progress of public finance, budget-based management of property will be a powerful and effective tool, based on the requirements of laws and current administration system, as well as both domestic and international experiences. In the context that currently the management of SOA in government institutions is not planned in the budget management, and that there is a lack of national-wide uniformed management system combining asset management and budget management, this paper analyses practical solutions and recommendations for the country reform, through discussion of the typical SOA management styles of developed counties and developing countries, considering China’s practice and reform process of SOA in department institutions. This paper is based on both domestic and foreign researches, using both macro and micro perspectives, combining both theory and practice discussions. Finally, this paper, taking Government Institution A as example, summarizes the basic situation of SOA management, covering the volume and structure, utilization, as well as budget management style. It describes deficiencies in current practice of integration of SOA management and Budget management, and makes recommendations for future improvement.The main conclusions of this paper include:(1) the aim of budget-based SOA management in government institutions is the benefit maximization of public financial resources;(2) Standard systems of assets and budget, accounting system, as well as incentive and constraint mechanism are the basics of budget-based SOA management model;(3) An exploratory Model of SOA budget, using the depreciation rate of property as the utilization rate of SOA.