Research On The Construction Of Multi-Year Budgetary Balancing Paradigm In China

Based on the theoretical development and practice of Chinese public finance reform in the past 20 years,the construction and improvement of modern financial system has become the core content of Chinese fiscal and tax reform for a long time now and in the future.Under the background of Chinese economy entering the "new normal",the state macro-control is facing a complex situation.On the one hand,the economic development model which has been driven by high energy consumption,high investment and export begins to fail.On the other hand,the governance model which promotes growth through large-scale economic construction spending faces many contradictions.In this case,the construction of a modern fiscal system needs to emphasize fiscal predictability,establish the connection between national economic and social development goals and finance,and deal with the reality of slower economic growth from a more long-term perspective.In addition,we have made great breakthroughs in the gradual reform of the budget management system in China,but we have also exposed some deep-seated problems at the same time:why does the progress of fiscal revenue and expenditure deviate from the progress of time?Why do local government debts continue to swell under the annual budget balancing rules?How does medium-term and long-term expenditure project break through short-term performance target to measure effect?These problems point to the single annual budget control approach.The multi-year budgetary balancing paradigm is put forward under this background,which can meet the needs of modern financial management system reform to a certain extent.As an important task of the new round of fiscal and tax system reform,the construction of the multi-year budgetary balancing paradigm is an indispensable link in the upgrading of Chinese budget management system.Therefore,the understanding of the meaning of the cross-annual budget balance mechanism,the design of the top-level system and the specific operation mechanism are particularly important.This paper hopes to provide guidance for the construction process of Chinese multi-year budgetary balancing mechanism on the basis of understanding the reform progress of Chinese multi-year budgetary balancing mechanism and studying the experience and lessons of advanced countries.This paper is mainly divided into five parts to analyze the multi-year budgetary balancing mechanism:The first part analyzes the process of proposing the multi-year budgetary balancing mechanism,and introduces the national conditions and policy background of the mechanism,and thus showing the practical significance of studying the multi-year budgetary balancing mechanism to some extent.Then it explains the related concepts of the multi-year budgetary balancing mechanism and tries to define the category of the multi-year budgetary balancing mechanism.Next,this part introduces the domestic literature and summarizes the researchers' view in four aspects:(1)the connotation;(2)the necessity of multi-year budgetary balancing;(3)the specific content;(4)the empirical studies.This paper also summarized many foreign studies on the positive and negative effects of multi-year budgetary management.Finally,the research framework and methods of this paper are summarized macroscopically.The second part is theoretical exploration.Based on the cyclical budget balance theory,the "golden rule" of government budget,and the life cycle theory,the theoretical basis of the multi-year budgetary balancing mechanism is constructed,and the guiding role of various theories on the construction of multi-year budgetary balancing mechanism is analyzed.The third part expounds the reform progress and difficulties of establishing the multi-year budgetary balancing mechanism in China.There are certain conditions for the construction of the multi-year budgetary balancing mechanism in China.On the one hand,the economic environment instability caused by China's economic transformation,the system uncertainty caused by fiscal and tax reform and the related technical means have indeed brought obstacles to the prediction of multi-year fiscal revenue and expenditure.On the other hand,the multi-year budgetary balancing mechanism is a collection of multiple policy tools and systems,which requires the realization of new budget balance standards and requires the cooperation and coordination of many systems.The fourth part introduces the international experience of the multi-year budgetary balance mechanism,mainly from the four aspects of basic elements setting,the multi-year financial rules,revenue and expenditure estimation and the operation and management of the budget stability adjustment fund,and gets inspiration.The fifth part introduces how to construct the multi-year budgetary balancing mechanism in China.Through the above discussion of the multi-year budgetary balancing mechanism,the realization path of this mechanism is expounded from four aspects:the establishment of basic elements,the annual budget compilation under the framework of multi-year budgetary balance,the system connection with the medium-term financial planning,and the improvement of the operation system of budget stable adjustment fund.