Research On Optimization Of Budget Management System In Government Financing Platform

Since 1980s,local government financing platform companies have made great contribution to local economy,infrastructure construction and promoting urbanization.With the development of social economy,their asset and debt have increased dramatically,and local government financing platform companies are faced with many problems and risks.For example,poor management system,lack of internal controls mechanisms,poor budget management system,imperfect evaluation system,and etc.As an effective tool,comprehensive budget management system can help local government financing platform companies to solve problems by improving financial management,improving the efficiency of capital utilization,and improving the ability of the risk prevention.However,traditional budget management system cannot fit in modern enterprises,since it only focuses on profit maximization.EVA-based comprehensive budget management system can raise standard of management and improve the quality of development for these enterprises.Managers can break down EVA value drivers,and focus on essential operating process that has great influence on EVA value,then optimize resource allocation structure of their enterprises,in order to achieve their strategic goals.This thesis uses Z Company as research object.In field investigation,it is found that the existing budget management system has some problems,including inconsistent budget objectives with strategic objectives,lack of employee participation,lack of budget execution control,imperfect evaluation system,and etc.In order to solve these problems,Z Company needs to buildy an EVA-based comprehensive budget management system,and also optimize its organization structure,budgeting process,budget execution control system,and evaluation system.Finally,Z Company needs to take measures to ensure the new EVA-based comprehensive budget management system can be carried out smoothly.Senior managers of Z Company should promote the new budget system,and involve all employees in budgeting process.They also need to build talent group,improve financial management,and improve informatization level of Z Company.