Research On Public Budget Adjustment And Administration

The Third Plenary Session of thel8th CPC Central Committee proposes that finance is the foundation and important pillar of national governance. The budget is the core content of the finance system and administration, and the budget adjustment is the important link of the budget procedure. Comprehensive, standard, open and transparent modern budget administration system is the important content of the modernization of budget management, and benefits to the standardization of government action and promotes the achievement of national governance goals.Combining theory and practice, this article investigates the budget adjustment status in our country. At the present stage, the budget adjustment of our country occurs more because of the unscientific financial system and budget management system instead of essential adjustment for the great changes led by annual macroeconomic, social situation and so on. Budget adjustment is not stressed, seriously underestimated, short of restraint, and weak in supervision, and the initial budget of the year itself contains limited constraints. These lead to a poor management of budget adjustment management. On the level of system, the new budget law brings the dawn to budget adjust and administration, however, the cognition of our government on budget adjustment is not enough. Apparently, it is not consistent with the function of the budget adjustment and administration in the present situation of national governance for the new normal state of the economic development and finance administration.This article defines budget adjustment as the deviation in the whole process of "initial budget-revised budget-final account". "Initial budget-revised budget" is the expected level, the process of revenue collection target forming and expenditure resource allocating. The deviation is measured by the index of "revenue or expenditure budget adjustment deviation degree". "Revised budget-final account" is the practical level, the process of real income and spending appropriations. The deviation is measured by the index of "appropriation deviation or real income deviation degree". "Initial budget-final account " is the result of the merger and the deviation is measured by the index of "budget and outlay deviation degree".In the further research, the deviation extent of expenditure budget adjustment is the focus of this study, and the index of ’expenditure budget adjustment deviation degree"is the key indicator because of the closely link with the decision of resource distribution and fund allocation made by authority. Through the empirical research, this paper concludes that budget adjustment has reached a higher degree and has been seriously underestimated. The index of "expenditure budget adjustment deviation degree" of all levels of government is far higher than the index of "budget and outlay deviation degree", which is usually used to measure the budget adjustment extent in China academic research. At the same time, expenditure budget adjustment deviation degree of provincial level is greatly higher than the national, central and local government (summary) level because of budgeting planning management between different level governments.In the empirical research on the influencing factors, this paper studies "expenditure budget adjustment degree" index of local government (summary) data from 1994 to 2012 by VAR dynamic model, and tests that expenditure budget adjustment degree can explain its fluctuation near 56.2% and the fluctuations of the rate of surplus revenue accounting for real income and fixed asset investment growth rate can explain the fluctuation nearly 43.8%,which accounts for nearly 80% of the proportion 56.2%.By OLS regression model to study the provincial data in 2012, the article tests that the proportion of accumulated surplus/deficit of the previous year and transfers from central government accounting for expenditure revised budget has significant impacts on the provincial expenditure budget adjustment degree. The rate of surplus revenue accounting for real income and the proportion of non-tax revenue accounting for real income do not have a significant impact.Budget itself is not the goal, the budget must be dynamic and adapt to the needs of governance and environmental changes. To a certain extent, the budget and budget adjustments both reflect the government policy decisions and even the national strategic decisions, and both regulate the government revenue and expenditure behaviors. This paper proposes that we must re-examine and fix a position of China’s public budget adjustment and administration. The situation should be clearly recognized and the objectivity and necessity of budget adjustment should be respected. However, it is also important to bear in mind the risk, maintain the seriousness and authority of initial budget, avoid damaging the credibility of the government subjectively and randomly. At this stage, it maybe fixes such a position on China’s public budget adjustment:the budget adjustment is an organic part of dynamic and sustainable budget,it is a necessary solution of responding to economy fluctuations and public services demands and the specific environmental changes. Further, effective administration of the budget adjustment can fix such a position:In the current fiscal year, the budget adjustment should be contained in such a range, which is to ensure that initial budget maintains the national governance policy intention, and adapts to the circumstance changed by a strict series of rules and regulations, continues playing a role, promotes the realization of the goal of governance.On the countermeasures, the paper proposes using the requirement of the modernization of national governance system and ability and construction of law-based government to be the guiding ideology, and the goal is to construct the multi-level and three-dimensional administration and supervision mechanism through perfecting index system, behavior rules, responsibilities, and enhancing the ability of the approved initial budget binding force by improving the approved initial budget foresight, unifying the policy process and the approved initial budget process. Macro administration environment of budget adjustment should be gradually improved which is mainly composed of implementing the Budget Law, system of power adapting to expenditure responsibility, construction of social common governance system, improving governance pattern and promoting budget information open. Through the reasonable arrangement of the budget adjustment system, it can ensure that the budget process is responsible, constricted and dynamic, and it really plays a basic and pillar role in the governance of finance and nation.