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Financial expenditure analysis report
Over the years, a long-term problem faced by local finance in China is that local fiscal revenue is far from meeting the needs of local fiscal expenditure. In order to alleviate this contradiction, legislative departments, administrative departments and theoretical departments at all levels have conducted many useful discussions and practices on how to increase local financial resources, but the limited income growth has always been difficult to meet the huge demand for funds, and the financial difficulties remain the same, even increasing. Explain that the energy of the above ideas is limited for solving problems. The author believes that fiscal revenue, as the compensation for the financial cost paid by the government to provide public goods, is intrinsically related to fiscal expenditure. The two are mutually causal. In the most basic sense, fiscal revenue is based on fiscal expenditure. Therefore, a careful study of local fiscal expenditure is a more effective means to promote the improvement of local fiscal situation. Since the system reform, local fiscal expenditure, as the economic basis for local governments to perform their functions, has made great contributions to local economic development in China. However, with the deepening of the reform process, the problems in the field of local fiscal expenditure have become increasingly obvious, and the fiscal expenditure structure needs to be optimized urgently. This can be mainly analyzed through the following four contradictions: 1. The contradiction between the rapid growth of total expenditure and the imbalance of fiscal expenditure structure. Since the implementation of the financial system of "eating by kitchen", the share of local fiscal expenditure in the whole fiscal expenditure has been increasing. During the period of 1983, the central and local governments accounted for 49.7% and 50.3% of the budgeted and extrabudgetary expenditures respectively. 34.3%、65.7%。 By 1995, the above indicators have become 29.2% and 70.8% respectively; 15. 1%、84.9%。 (Note: Since 1993, the extra-budgetary revenue and expenditure does not include the revenue and expenditure of state-owned enterprises and competent departments. However, this change does not affect the overall pattern of central and local fiscal expenditures. On the contrary, it clearly shows the actual use of extra-budgetary funds by the central and local governments, that is, the local government is the protagonist and the central government is the supporting role. It shows that local fiscal expenditure has accounted for about two-thirds of the total fiscal expenditure, which plays a decisive role. In fact, it has formed a pattern of "big local and small central". In the past ten years, local fiscal expenditure has grown rapidly, far exceeding the increase of fiscal revenue in the same period. Compared with 1986 to 1992, the average annual growth rate of local fiscal revenue and expenditure is 1 1.6% and 14.3% respectively. In absolute terms, the financial expenditure of 1996 is 4.79 times that of 1985. However, with the rapid growth of local fiscal expenditure, the utility of fiscal funds has not increased synchronously, and the fiscal expenditure structure is unbalanced. Its basic manifestations are as follows: First, the proportion and growth rate of local recurrent fiscal expenditure in the whole local fiscal expenditure is higher than that of constructive expenditure, thus making local finance have obvious financial characteristics of "eating". The situation of local fiscal expenditure from 1992 to 1996 shows that the constructive expenditure of local finance has never reached 30% of the fiscal expenditure at the same level. This situation seems to show that the government is gradually withdrawing from the field of private goods, but the problem is that most of the projects in China's financial constructive expenditure belong to the fields where the government should make a difference under the market economy. Therefore, to some extent, this shows that the whole local fiscal expenditure structure in China is unreasonable. Second, in the recurrent expenditure of local finance, administrative funds are expanding day by day. 1992, 1994 and 1996, the sum of administrative fees and public security organs' expenditures in local fiscal expenditure was 38.836 billion yuan, 67.056 billion yuan and 96.936 billion yuan respectively, accounting for 19.89% of local fiscal recurrent expenditure in that year. The expansion of administrative funds has crowded out badly needed local public expenditure items, which shows that the cost of providing public services in China is too high. Third, in every personal expenditure, per capita expenditure far exceeds public expenditure. Take 1994 as an example, the per capita expenditure on culture, education and health, education and administration in China is about 80%. (Note: Headcount expenses include wages, supplementary wages, employee welfare expenses, retirement expenses, people's grants and price subsidies for major non-staple foods. Public funds include official expenses, equipment purchase expenses, repair expenses, business expenses, other expenses and differential subsidies. ) Especially after the wage reform, headcount funds occupy an absolute dominant position in most expenditure items. This has further expanded the share of administrative funds in the whole local fiscal expenditure. Therefore, the expansion of the total expenditure not only failed to optimize the local fiscal expenditure structure, but also led to more obvious imbalance and irrationality. 2. The contradiction between the increasingly heavy deficit "burden" and the growing demand for career development is influenced by many factors. At present, the "burden" of local fiscal deficit is getting heavier and heavier, and the allocation of funds is unprecedented. Some local governments can't pay wages on schedule and can't reimburse travel expenses and medical expenses in full and on time. The special funds allocated by the superior finance are often not in place in time because of misappropriation. Therefore, some local finances have become real "meal" finances, and it is difficult to maintain the "meal" finances in a few places. According to the data, from 65438 to 0986, in the budget revenue and expenditure, the local finance has a large fiscal deficit almost every year. This is particularly prominent in ethnic minority areas. At the same time, the deficit continues to expand, making local financial expenditure limited to wages and office expenses, and this "double insurance" is limited to a low level. In fact, the local finance exchanges the increase of the debt burden for the reduction of the deficit. This situation will inevitably affect the stability of the balance of local fiscal revenue and expenditure in the Ninth Five-Year Plan and even in a longer period, and will inevitably conflict with the growing needs of career development, so that the "foundation" of agriculture, the "foundation" of education, the "national policy" of family planning and the "key" position of public security law cannot be guaranteed financially, and it is extremely difficult to alleviate the unreasonable structure of local fiscal expenditure. 3. The contradiction between insufficient budget revenue and a large number of irregular financial activities. Statistics show that the local fiscal revenue and expenditure is almost an annual deficit, indicating that the income in the budget is insufficient and cannot meet the normal financial needs. But at the same time, it is an obvious fact that the living conditions of cadres and workers in financial allocation units are getting higher and higher in both developed and underdeveloped areas. This is obviously a strange asymmetry phenomenon. The direct reason lies in the existence of a large number of extra-budgetary funds and the legalization of irregular income-generating activities. It has at least the following three consequences: First, it is difficult to increase the income within the budget with economic growth; Second, it is possible to carry out irregular financial activities; Third, extra-budgetary income has become a "reservoir" for local fiscal balance, and it is difficult for relevant institutions and departments to obtain real information such as local fiscal revenue and expenditure. Because of this, we can basically only examine the direct cause of the shortage of income in the budget from the aspect of extra-budgetary income, rather than a large number of standardized financial activities. From a national perspective, compared with the same caliber, the total local extra-budgetary revenue of 1992 is 2.99 times that of 1984, with an average annual growth of 14.7%, while the average annual growth of local budgetary revenue is only 12.5% in the same period. 196 compared with193, the local extra-budgetary revenue increased as high as 17 1.78%. On the positive side, the growth of extra-budgetary funds and the government's control over the flow of these funds have achieved certain social and economic benefits for governments at all levels to comprehensively balance social financial resources, supplement the shortage of state budget funds, support urban infrastructure construction and promote the development of various undertakings. However, a considerable part of this fund is used to improve office conditions (including office buildings and office facilities), the convenience of transportation and communication tools, and increase additional consumption such as employee welfare (including employee housing, subsidies and allowances), which is basically an unconstructive expenditure for individual and group consumption. Further make the whole local fiscal expenditure structure appear an unreasonable situation of "sinking at one head". 4. Contradictions between different regions and different levels in the same region. At present, the level of per capita fiscal expenditure varies greatly among regions with different levels of economic development in China. In terms of income, the per capita fiscal revenue of Qinghai Province from 65438 to 0996 was less than 2% of that of Guangdong. In terms of expenditure, the per capita fiscal expenditure of Guizhou Province ranked last is only 1 1.93% of that of Shanghai. This situation directly leads to the difference of fiscal expenditure structure in different regions. For example, in terms of the share of fiscal expenditure, in 1996, the proportion of administrative expenditure in Shanghai, Beijing and Tianjin was 3.55%, 5.32% and 5.55% respectively, and that in Qinghai, Guizhou and Tibet was 65.438+05.99%, 65.438+04.86% and 26.88% respectively. Therefore, in economically developed areas, in addition to meeting the needs of political power construction and general expenditure, finance also has the financial resources to carry out constructive expenditure, while in underdeveloped areas, its financial expenditure is mainly used to guarantee wages and the lowest level of official expenditure. This difference not only leads to the imbalance of fiscal expenditure structure between regions, but also further widens the gap between regions. The above phenomenon also exists among different levels in the same region, which makes the unified expenditure standards issued by the central and local governments vary greatly among different levels in the same region, thus bringing about the imbalance of expenditure levels and expenditure structures among different levels in the region. Any phenomenon can be found in one or several phenomena. There are many problems in the current local fiscal expenditure structure, which are inseparable from the following deep-seated reasons: First, under the market economy, the division of labor between the government and the market should be very clear, that is, what the market can do and do well should be given to the market as much as possible, and only what the market can't do or can't do should be done by the government. However, because our country is currently in the period of economic transformation, the division of labor among government, market and enterprises has not changed accordingly, which has caused unreasonable financial expenditure and financial difficulties to a considerable extent. For example, simply from the fact that there are many people who eat "imperial grain" in our country at present, and the growth is too fast, which leads to a substantial increase in fiscal expenditure, it can be explained that the current fiscal expenditure structure is related to the historical "heritage" that China's reform has not yet touched the big government administrative institutions established during the planned economy period. Second, due to historical, geographical, policy and other subjective and objective reasons, the economic development of various regions in China is extremely unbalanced, and this imbalance is multifaceted, including the total amount of economic and social development indicators, the per capita possession, the actual income and living standards of urban and rural people, and so on. Taking the per capita net income of farmers as an example, some developed coastal areas are more than 15 times that of low-income areas; Take the provinces as an example. 1996, the per capita GDP of Guizhou is 26 times different from that of Shanghai. In addition, there are obvious regional differences within the same province. For example, 1992, the GDP difference between Zhuhai, the richest city in Guangdong, and Heyuan, the poorest city, is 16.4 times. As a comprehensive reflection of a regional economic level, the local financial situation itself is a mirror of regional economic development. Fiscal deficit, huge fiscal deficit and high proportion of central financial subsidies are the basic manifestations of backward regional economic development to a great extent. However, the disparity in fiscal revenue and expenditure level and the difference in fiscal revenue and expenditure situation between regions are the basic reflection of the unbalanced regional economic development. Third, the financial system, as a system to divide the distribution relationship between the central and local governments, is the basic legal norm to deal with the relationship between the central and local governments. However, since the economic system reform, China has implemented various financial contract responsibility systems in most years. Even the tax-sharing system implemented by 1994 follows the old practice under the contract responsibility system, which is nominal. Because the distribution relationship between the central and local governments has not been regulated by law, it is impossible to regulate the distribution relationship of local governments at all levels, and it is difficult to effectively optimize the regional structure of fiscal expenditure under the general financial difficulties at all levels. Fourth, the development of market economy has led to an increase in the demand for local public goods. In different countries and different stages of economic development, public expenditure has different scope and scale. Its general development law is: the scope and projects are from less to more, and the scale is from small to large. At present, China is still in the period of economic system transition. In this special period, with the development of market economy and the improvement of people's living standards, it is objectively required to provide more and more public products with obvious regional characteristics, but the current central and local distribution systems cannot meet this objective requirement. In the case that the limited fiscal revenue can't meet the huge fiscal demand, and the "income-generating" system is legalized, various non-standard forms of income such as extra-tax charges, apportionment, fines, sponsorship and fund-raising are greatly derived and confused, resulting in a large number of non-standard fiscal activities. Obviously, the current situation of local financial revenue and expenditure and the difficulties faced by local finance are not or mainly caused by finance itself, but the financial reflection of the comprehensive effects of many historical, political and economic factors in China. Therefore, alleviating local financial difficulties and improving local financial revenue and expenditure is also a complex social project, which is long-term, arduous and complicated. In order to get better results in a short time, we must start from the inside and outside of finance, transform the existing environment, and focus on the following aspects. 1. Correctly position the role of the government and reduce the supply cost of public goods. Under the condition of market economy, because the basic idea of division of labor between government and market is completely different from the original system, most of the projects included in local fiscal expenditure belong to the level of meeting the demand of local public goods, that is, mainly providing local public goods that are difficult to provide according to market principles. The provision of public goods needs cost, but it can't bring any direct benefits. Objectively, the government is required to make users of public goods pay for it through necessary technical devices. In this sense, local fiscal revenue is the price or expense paid by citizens for consuming local public goods. From the determination of public demand to the provision of public goods, there are still many links, and the government needs to set up corresponding bureaucracy. Moreover, under the condition that citizens pay a certain fee, the larger the bureaucratic organization established by the government, the higher the supply cost of public goods, the less the supply quantity of public goods, and the worse the quality. Therefore, with the deepening of reform, China should change the functions of local governments according to the requirements of market economy principles, correctly locate the areas of local government functions, and take the seventh institutional reform as an opportunity to vigorously abolish institutions that are not suitable for the development of market economy; Determine people by posts and reduce the supply cost of public goods. 2. Cooperate with the market-oriented reform process and carefully clean up the scope and cost of financial supply. With the acceleration of market-oriented reform, many original balanced budget units have become or gradually become independent accounting economic entities; Many goods and services originally provided free of charge by financial supply units have become paid supply, and gradually changed from low-price supply to high-price supply. Moreover, the income of many units has entered a relatively stable stage. For example, since 1997, the enrollment of colleges and universities has been fully merged, and all students who pass the entrance examination have to pay for school, and tuition income has become the fixed income of such institutions. Therefore, in the process of transition to market economy, we should pay great attention to cooperate with the process of market-oriented reform, clear up the scope of financial supply in time, and no longer provide funds from financial supply to units that have provided or have the conditions to provide goods and services according to market-oriented principles. At the same time, readjust the financial supply standard, provide sufficient funds for units that provide pure public goods, and take measures to prevent excessive growth of funds; For units that provide mixed goods and have a certain source of income, they can allocate funds in the form of fixed or fixed subsidies according to specific conditions, so that the use of financial funds is really limited to meeting the needs of the public. 3. Rectify the distribution order and establish a standardized local fiscal revenue system. At present, the irregular and chaotic distribution order is the most important reason for local financial difficulties and unreasonable fiscal expenditure structure, and it is also the main manifestation of irregular government behavior. Therefore, we must make great efforts to rectify the distribution order on the basis of standardizing government behavior. First of all, the regular fees and abnormal income suitable for taxation in the fund should be included in the taxation track; Secondly, we should adapt to the reform of tax-sharing system, gradually decentralize tax power and moderately levy local taxes, so that local fiscal revenue will increase with the increase of local public goods demand; Third, clear the right to charge and unify budget management. Fees and taxes are both necessary forms of fiscal revenue, but there is an objective boundary between them: generally speaking, with a wide coverage and a long duration, the revenue is used for general public expenditure, and the tax form should be used if the geographical and boundary nature of the benefit is relatively vague; However, if the coverage is narrow and the duration is short, the income is used for special expenditures, and the beneficiaries are regional and the boundaries are relatively clear, the form of charging can be adopted. Therefore, in order to ensure that tax revenue accounts for the main position of the whole local fiscal revenue, we can make clear the power of local governments at all levels, including township governments, to obtain certain income by formulating charging decision-making procedures and corresponding decision-making checks and balances mechanisms. This is not only conducive to the establishment of local public revenue system, but also conducive to the improvement of China's distribution order and fiscal revenue and expenditure. 4. Strengthen the financial resources and resources of the central and provincial local governments and improve the transfer payment system. Under the condition of market economy, the government generally has three functions: allocating resources, balancing income distribution and stabilizing the economy. Among them, the latter two functions related to the overall interests should be mainly handed over to the central government, and the central finance should also play a leading role in macro-control. This is the basic guarantee for the sustained and coordinated development of the national economy. However, China's economic development is extremely unbalanced, which is not conducive to maintaining national unity and stability, nor to the healthy development of the economy. Therefore, it is of great significance to establish a scientific transfer payment system. Generally speaking, the financial transfer payment system includes not only the expenditure transfer from the higher government to the lower government, but also the income transfer from the lower government to the higher government. Here mainly refers to the former. Since China's political organization includes the central, provincial, municipal, county and township levels, the premise of establishing a scientific financial transfer payment system is to strengthen the financial power and financial resources at the central and provincial levels. Even if the central fiscal revenue accounts for a high proportion of the whole national fiscal revenue, the provincial fiscal revenue accounts for a high proportion of the whole local fiscal revenue. Its ultimate goal is to enable the central finance and provincial local finance to subsidize their lower-level finance by various forms of flexible financial transfer payments, so as to balance the financial supply capacity of different regions, alleviate the imbalance of China's economic development, and realize the basic functions undertaken by governments at all levels.