On the Reform of Public Finance and Budget Management

Public finance and budget management is a brand-new concept. This paper profoundly expounds the practical basis and influence of budget management reform from the perspective of management. With the deepening of reform and the further improvement of the socialist market economic system, public finance will play an increasingly important role in the wave of market economy, which will further promote the process of modernization in China.

Keywords: public finance; Budget; Management; reform of the banking system

First, the basic understanding of public finance

The concept of public finance has only attracted people's attention in recent years. Previously, from the perspective of the leadership, Comrade Xiang Huaicheng, then executive vice minister of the Ministry of Finance, clearly put forward in the TV lecture on fiscal reform around 1994? Public finance? This concept. 1998 In the first half of the year, Comrade Xiang Huaicheng emphasized this concept after he was transferred from Director State Taxation Administration of The People's Republic of China of People's Republic of China (PRC) to Minister of Finance. 1998 12 15 at the national financial work conference, comrade Li Lanqing, vice minister of the State Council, proposed to actively create conditions and gradually establish the basic framework of public finance. At the same time, he also put forward four principles: first, take ensuring public expenditure as the main task of finance, manage it well, and ignore what should not be managed; Second, we must promote fair distribution according to law; Third, make full use of economic means such as budget, tax and national debt to participate in macro-control and do a good job in transfer payment; Fourth, adjust the deviation of market allocation of resources, reflect the national industrial policy, and at the same time implement indirect management of state-owned enterprises and do a good job in the management of state-owned resources. Since then, leaders of the State Council and the Ministry of Finance have talked about public finance on different occasions. Especially in 2000, Vice Minister Li Lanqing once again raised the issue of establishing the basic framework of public finance at two seminars on finance and taxation for provincial leading cadres held by the Central Committee. The concept of public finance is put forward by policy makers under the grand strategic background of transforming government functions, realizing government functions requires reasonable financial planning, deepening reform and promoting development, which is of great significance. The so-called public finance is the basic idea and orientation of the adjustment of government and financial functions. Starting from the reality of our country, we need such a basic guidance for the adjustment of financial functions and forms in the process of transforming from the traditional system to the socialist market economy system. Under this guidance, it is emphasized that finance must conform to the reform and reflect the profound adjustment of government functions and the self-reliance of financial management system.

Second, the theoretical and practical basis of budget management reform

(A) the theoretical basis of budget management reform

1, economic base:? Give priority to efficiency and give consideration to fairness? This is the most common principle of financial resources allocation. The efficiency of resource allocation is divided into two levels. The first level is the narrow concept of interest, that is? Resource utilization rate? , refers to how a unit or department organizes and uses limited financial resources to maximize its effectiveness. What is the second level? Efficiency of resource allocation? , refers to how to allocate limited financial resources between different units and departments, so that each resource can be effectively allocated in the most suitable use and direction.

On the basis of the principle of giving priority to efficiency, the budget arrangement also needs to give consideration to fairness. It is required that the main body of budget allocation must consider the problem based on the overall situation, put the overall interests of the country and the people first, and implement the relevant national policies to the letter. It is required that the main body of budget allocation should arrange the budget expenditures of all departments and units equally to avoid unfair treatment among departments and units due to unfair resource allocation.

2. Political science foundation: managing money and governing the country according to law. Jiang Zemin pointed out in the report of the 14th Party Congress? Governing the country according to law? We should unify upholding the leadership of the Party, promoting people's democracy and handling affairs in strict accordance with the law, ensure the implementation of the Party's basic line and principles in terms of system and law, and ensure that the Party always plays the leading core role of commanding the overall situation and coordinating all parties. ? Budget? As a basic means to reflect the national consciousness, the scope, scale and direction of government activities and macro-control the national economic operation, we must act in strict accordance with the budget law and realize the scientific, standardized, institutionalized and legalized budget management.

3. Management science foundation: introducing management science into the budget process. Modern society has entered the era of management. Workers in the theoretical and practical departments unanimously advocate that the national budget system should incorporate more analytical management methods to make the use of budget resources more efficient. Therefore, from the perspective of management, we should emphasize the functionality of the budget process, including budget control, management and planning. For example, the form of budget preparation has changed from the traditional summary budget by category and expenditure to the summary budget by department and project, and zero-based budget, comprehensive budget and standard cycle budget have been prepared. The ultimate goal is to change the budget from passively supporting government administration with funds to actively participating in the decision-making of government administrative plans and activities, making the budget a tool for theoretical decision-making and improving the effectiveness of government decision-making.

(B) the realistic basis of budget management reform

1. The development of socialist market economy and the transformation of financial functions put forward new requirements for budget management. With the development of socialist market economy, the government's function has changed from the main management of state-owned economy in the past to the management of national macroeconomic and social affairs and indirect management of state-owned assets as the owner of state-owned assets. Accordingly, its financial functions and scope have changed gradually from the past, covering everything. This is conducive to fundamentally standardizing government distribution, improving government functions, and meeting the objective requirements of reform and development.

2. The current financial situation urgently requires improving the level of budget management. At present, the contradiction between China's fiscal revenue and expenditure is more acute. One reason is that China is in the primary stage of socialism, with low productivity, low tax contribution to economic growth, limited fiscal revenue growth, limited fiscal growth and urgent expenditure demand, which constitute the basic characteristics of finance in the primary stage of socialism. In particular, China's reform is entering a critical period, and the pressure on fiscal expenditure is unprecedented. Only by deepening the reform of budget management, optimizing the expenditure structure and rationally allocating financial resources can the contradiction between revenue and expenditure be alleviated to some extent.

Three. Basic contents of budget management reform under the guidance of public finance

Budget reform

The main contents of the reform are:

1. Reform the budgeting method and implement the departmental budget. Compared with the previous budget preparation methods, departmental budget is more suitable for the needs of supervision and management: first, the budget preparation time is greatly advanced; Second, a department forms a budget; Third, the budget preparation method is changed from the previous department to the subordinate unit, and from the grass-roots unit to the step-by-step summary; Fourth, the way of budget examination and approval is unified by the original business departments (bureaus) of the Ministry of Finance and the departments with budget distribution rights, and changed to the unified examination and approval of budgets by the Budget Department of the Ministry of Finance.

2. Change the tradition? Base plus growth? Adopt the "zero-based budget" budgeting method. In the departmental revenue budget, according to the economic development, it is approved item by item according to the income category. Administrative charge and other extra-budgetary income organized by departments should be approved to units and projects. The departmental expenditure budget is approved and summarized according to the different uses and categories of funds.

3. Expand the scope of budget preparation and implement a comprehensive financial budget. 4. Improve the compilation procedure. Ensure the preparation period of budget preparation, and make budget preparation more scientific and reasonable. In addition, a series of other budget reform measures have been implemented in various places. For example, the standard income budget law implemented in Hainan Province, the budget plus hearing law in Anhui Province, and the double-entry budget system in Sichuan Province. Although the depth of the reform is not consistent, they are all fruitful, enriching the content of the budget preparation reform and laying a good foundation for the next comprehensive implementation of the budget preparation reform.

(B) improve the government procurement system

Government procurement refers to the behavior of state organs at all levels and institutions and social organizations that implement budget management to obtain goods, projects and services by purchasing, leasing, entrusting or employing financial funds such as budgetary funds in a competitive, merit-based, fair and just manner. In recent years, local financial departments and relevant departments of the central government have actively carried out the pilot work of government procurement with reference to international practices and in accordance with the relevant spirit of the State Council and relevant documents of the Ministry of Finance, and have done a lot of work in system construction, system construction and organization and implementation of government procurement, and achieved remarkable results.

(3) Reform the mode of payment and distribution of financial funds, and gradually establish a centralized treasury receipt and payment system.

The centralized treasury receipt and payment system is a financial fund management system relative to the decentralized treasury receipt and payment system. This system has three basic characteristics: first, the unified opening of a single treasury account; Second, all fiscal revenues are paid directly to the state treasury, and the main fiscal expenditures are paid directly by the finance to the providers of goods and services; The third is to establish an efficient budget execution organization, a scientific information management system and a perfect supervision and inspection mechanism. Under this system, the financial revenue and expenditure management is standardized, the income can not be returned to the treasury at will, the expenditure is supervised in advance, and the efficiency of fund use is obviously improved.

(D) Improve the rigor and seriousness of budget implementation.

In the new financial reform, we should emphasize one problem, that is, dilute the final accounts and strengthen the budget. Perhaps the final accounts in the future are an audit of old files, and the budget has been fully discussed by the special Committee in advance, reflecting public opinion. Extremely serious, the implementation is very strict, and even basically inflexible. In addition, there is a trend in the future budget implementation, that is, more units and projects will only see the figures but not the money. For example, the equipment, office supplies and services required by the unit are all included in the government public procurement channels based on bidding. The benefits of the government's procurement of goods through public bidding are clear at a glance. Reduce intermediate links in budget expenditure, enhance transparency and standardization, and strive for competition. Cheap, good quality? , can also be minimized? Take kickbacks? And corruption such as power and money transactions.

After the implementation of the centralized treasury payment system, it also provides a technical guarantee for the realization of the integrity of the budget. From the perspective of development prospects, the realization of budget integrity has gone through two stages, from? Three plus one? Arrive? Two plus one? That is, the concepts of off-budget and in-budget in the first stage are still retained, but those outside the system include what people say? Small vault? Financial resources will be cleaned up and included in the extra-budgetary track. Further development, extra-budgetary financial resources will be gradually standardized in the process of strengthening management, and gradually incorporated into the budget with the further maturity of conditions. This is the second stage. Two plus one? , so as to finally realize the integrity of the budget.

There is an area that needs to be explored step by step in budget implementation, that is, it is inevitable to make modifications and adjustments in budget implementation. How to strengthen this management is worth studying. On the premise of strengthening the budget and diluting the final accounts, after making various strict definitions, we must also admit that there is still room for manoeuvre in the budget. In the past, it was embodied in the preparatory category. In the future, no matter what it is called, there will always be an elastic range for camera decision-making. How to master this interval and how to set up the form of fund management and decision-making procedures needs further discussion.

Four. Impact of budget reform

The comprehensive promotion of budget reform under the guidance of public finance will have a far-reaching impact on the financial sector and other relevant departments of the country.

1, for the financial sector, this is a profound? Change your life? Institutional changes. Put yourself on your head after the reform? God of wealth? The aura is dim, let financial management? Divided the money The continuous compression of flexible space makes other parties and the public more and more consciously and effectively supervise the financial sector, which is their own life. This is an inevitable trend, and it is better to do this reform later than earlier. This is to adapt to the overall and long-term requirements, starting with compressing the elastic space and improving the degree of standardization.

2. This is also the fate of those who have vested interests in the leather sector and budget units. In the future, in order to ensure the integrity of the budget, improve transparency, improve the scientific level of the entire budget management and the efficiency of the use of funds, it will compress the vested interests of some governments and budget units. Although this is a painful process, it is necessary and beneficial to the whole society and the modernization of China.

3. After the reform, it is inevitable to speed up the modernization of fiscal and taxation management, which also puts forward higher requirements for the quality of fiscal and taxation personnel. It is more and more difficult to do fiscal and taxation work according to the old methods in the past. At the same time, some advanced management experience from abroad will inevitably be introduced to China in the future. Therefore, fiscal and taxation cadres are required to master a series of modern management knowledge and skills.

4. In the future, budget preparation, implementation and supervision will be separated gradually. No matter the implementation of management system, no matter the establishment of management system, there are constraints between them. At the same time, a set of supervision system will be established and developed to independently exercise its supervision function. In this way, three sets of independent and mutually restrictive systems are formed, which embodies the standardized power checks and balances under the guidance of public finance, thus ensuring the transparency of budget management and the real realization of public will.

5. There must be new requirements in institutional adjustment. It is reflected in the intention of serving the public and all taxpayers, providing more convenient services for the business development of relevant departments, and greatly improving the work efficiency of various departments in handling affairs.

It can be seen that the implementation of budget management reform under the guidance of public finance is of great significance to the development of socialist market economy. First of all, it standardizes government behavior and will effectively promote the implementation of the rule of law in the financial management system. Second, it improves the efficiency of the management and use of government funds. Third, in the aspect of combating corruption and promoting honesty, relying on the establishment of the system can reduce the breeding of corruption, make the government and fiscal and taxation staff truly return to the purpose of serving the people, and thus reduce the space for illegal and disorderly behaviors such as trading power and money and practicing fraud. Fourth, it can promote the democratization process and promote the democratization of the whole society with the democratization of financial management. Fifth, it is an integral part of supporting reforms that significantly promote social and economic development and modernization.

Did you get a look at him? Public organization budget management paper? People still see:

1. Budget Management Paper

2. Papers on national budget management

3. Enterprise Budget Management Paper

4. Papers organized by public organizations (2)

5. Talking about the comprehensive budget management documents of enterprises