Research On Medium-term Fiscal Planning Of Local Government

Implementation of Medium-term Fiscal Planning is one of the important contents of the new round fiscal and taxation system reform,which is also an important measure to improve budget management and control,promote the sustainable development of public finance and enhance the efficiency of financial resources allocation.In 2015,the State Council and the Ministry of Finance dispatched documents successively to deploy the implementation of the Medium-term Fiscal Planning,which means that the full implementation of the Medium-term Fiscal Planning reform was officially opened up in China.Since the 2016 budgetary planning,although most provinces have started the preparation of a three-year interim fiscal plan and implemented the rolling management in China,which have achieved some success,there is still a certain gap compared with the scientifically-regulated Medium-term Fiscal Planning.The 19 th National Congress of the Communist Party of China pointed out the direction for the establishment of a modern budget system in China.Therefore,how to introduce the relatively mature medium-term financial planning and management tools abroad into the budget management practice of local governments in our country,integrate them with the national conditions of our country,exploit their intrinsic characteristics fully,guard against financial risks,improve the efficiency of fiscal funds allocation,build a strategic and result-oriented budget system and achieve a scientific,normative,effective and sustainable annual budget arrangement,are some questions needed to be addressed.By giving play to the foundation and important pillar of public finance in state governance,and then to improve the governance system of local governments and promote the modernization of governance capacity,it is one of the most important issues to be studied and solved in the reform of the current financial and tax system.In 2014,H province took the lead in exploring the preparation of medium-term financial planning around the country.Over the past four years,the framework and operation mode of the medium-term fiscal planning with local characteristics have been basically established.Although we have made some achievements,there are still a series of urgent problems to be resolved.After the summarization of the medium-term fiscal planning theory,based on a comprehensive analysis of the current situation and problems in the implementation of Medium-term Fiscal Planning in H Province,we present a series of suggestions on how to improve the Medium-term Fiscal Planning of local governments in China,by Combining the enlightenment from domestic and foreign practice.Follow with the above research ideas,this paper contains five sections as follows.The first chapter is the introduction,in which it will concisely state the background and significance of this research,review the relevant research results both at home and abroad,and put forward the research ideas,research methodologies,innovations and shortcomings.The second chapter is a literature review.Based on the review of the existing literatures of periodic budget balance theory,functional finance theory and earnings management theory,we can elicit the concept,essential characteristics,constituent elements and main functions of the Medium-term Fiscal Planning.The third chapter is the analysis of the current situation and problem existed in Middle-term Fiscal Planning in H province.On the one hand,it describes the background,main practice,characteristics and achievements of Medium-term Fiscal Planning in H province.On the other hand,it introduces the current difficulties and existing problems,and analyzes the causes of the problems.The fourth part is a summary of previous practice and exploration at home and abroad.By analyzing the successful Medium-term Fiscal Planning,we summarize the beneficial enlightenment for local governments to implement the Medium-term Fiscal Planning.The fifth part is the policy recommendations and suggestions.Based on the analysis of the present situation and problems of provincial Medium-term Fiscal Planning in H province,and the enlightenment both at home and abroad,combining with the essential characteristics,main functions and relevant theories of medium-term fiscal planning,we propose a series of policy recommendations,according to the role and orientation of local government,to improve the Medium-term Fiscal Planning Management measures from the aspects of strengthening the top-level design,consolidating the basic management of fiscal planning and accelerating the reform of supporting measures.Particularly,it has strong innovation in setting up the top-down fiscal planning mode with local characteristics,standardizing the government policy management,and defining clearly the orientation of the medium-term fiscal planning etc.Besides,It is worth noting that we put forward the conclusion that medium-term fiscal plan budget management is the basic management tool,which is subject to the annual budget management,will lead to a fundamental shift of local government budget management in China,from the input type of finance to the result-oriented budget management system,which will pay more attention to the efficiency and effectiveness of financial resources allocation.It will be very important to improve the fiscal management level of local government,promoting the governance system and governance capacity modernization of local government.We should summarize the shortcomings and problems of local government promptly in the process of reform practice,combining with the national conditions of our country,by improving top-level design,basic management and supporting measures,construct the medium-term fiscal planning management model with local government characteristics in China as soon as possible.Thus,the Medium-term Fiscal Planning Management can play an important role in promoting the local government management modernization..