The Study Of The Establishment Of A Multi-year Budget Balancing Mechanism In Shanghai

The new “Budget Law” stipulates that governments at all levels should establish a multi-year budget balancing mechanism.From the beginning of 2013,the Minhang District,Shanghai is selected as the pilot to carry out the mid-roll project budget,Minhang District has accumulated some experience in the preparation process,but it also exposed a lot of problems,such as statistics still in its infancy,the main sectors pay not enough attention to it,the legislation authorities are in the absence of multi-year budget approval process.So the basis of establishment of a multi-year budget balancing mechanism is still relatively weak in Shanghai.The business cycle theory and the balanced budget theory reveals a annual budget balance is short-sighted.A multi-year budget balancing mechanism can be used to regulate business cycle and eventually it reached a cyclical balance.I selected the United Kingdom,the United States,Russia,China's Jiaozuo as case of multi-year budget from which I summarized the components of a multi-year budget balancing mechanism.Only if the three relatively static aspects of the multi-year macroeconomic situation prediction,3-5 years' multi-year financial planning,budget stabilization fund play a role through three dynamic process of preparation,approval,implementation and adjustment of the multi-year budget,can it realize multi-year budget balance.Finally,I applied the components of a multi-year budget balancing mechanism to the situation in Shanghai,then put forward policy recommendations for how to build a multi-year budget balancing mechanism in Shanghai.