Research On Comprehensive Budget Management Improvement Of Nanning Highway Operation Company

With the rapid development of highways in China,the highway has played an important role in China’s transportation and economic development.The establishment of highway toll concession system led to the appearance of highway operation companies.The main source of income for the operating company is vehicle toll revenue.However,it is affected by the policy,belonging to non-subjective adjustment factors.Therefore,cost management becomes the focus of control for operation companies.In order to strengthen cost control,the comprehensive budget management system was introduced by many operating companies.CBM is a comprehensive management system that combines functions of control,incentive and evaluation,which gradually becomes the core of corporate management and control activities.Nanning Highway Operation Company is a wholly-owned subsidiary of Guangxi Traffic Investment Group.As the group’s cost center,it mainly adopts a "revenue depending on expenditure”approach,so its cost will directly affect the profitability of the company.Taking the company as the research object,this paper first elaborates the influence of strategic management theory,control theory and incentive theory on CBM,and introduces the system of CBM,and then analyzes the problems in the company’s CBM.Through the analysis of the status quo of the company’s organization system,target system and process system,it is found that the company has the problems such as lack of organizational guarantees for budget management,unclear budget targets,and unreasonable budget quota standards,and this paper further analyzes its causes.Combined with the business characteristics of the company,this paper proposes CBM improvement suggestion from the perspectives of budget informatization,budget organization structure,budget target determination and budget process.This paper provides some reference in building a scientific and rational comprehensive budget management system for the highway operation companies by the research of CBM,and it has also accumulated information for the thorough study of the CBM theory of the highway industry.