Reform Of China's Administration Control-Oriented Local Double-Entry Budget Management

This paper first applies Caiden's (Caiden, 1978) budgeting pattern theory to classify the stages of China's budgeting patterns, and suggests that China's current budgeting pattern is still in the transition from the "pre-budgeting stage" to the "budgeting stage". In this stage, the new performance budgeting corresponding to the "super-budgeting stage" is not fit as the target pattern of China's budgeting reform, and thus the "control-oriented" budgeting pattern reform must be promoted and improved, to that it could be conducive to China's advancement towards the "super-budgeting stage". Meanwhile, as "political control" involves a multitude of political restraints, the , practice of implementing "administrative control" first will facilitate the progress of "political control"; therefore, "administrative control" is the focal point of China's current "control-oriented" reform. With the "classic budgeting principle" in the "budgeting stage" as the foundation, the paper proceeds to put forward the requirements for the reform of China's local double-entry budgeting management; such requirements include using the "generality principle" to standardize the integral components of the local double-entry budgeting system, using the "consistency principle" to standardize the relationship among the sub-budgets in the local double-entry budgeting system, and using the "annual designation" and "stringency" to standardize the compilation and implementation of the sub-budgets.Centered on the requirement of strengthening China's local administrative control orientation, this paper then proposes the following concrete ideas for reforming the sub-budgets in the local double-entry budgeting system:I. Reform of Local Public Budgeting. On the basis of an assessment of the current situation of China's local public budget administration, this paper explores the topic by classifying the reform of the local public budgeting management into the reform of public budget compilation, the reform of public budget implementation, and the reform of the evaluation of public budgeting performance.II. Reform of the Operational Budgeting Management of Local State-owned Assets. After reviewing the current situation of the operational budgeting of state-owned assets and the debates on related theories, this paper suggests the public path of the operational budgeting of state-owned assets on the basis of the reform experiments of the operational budgeting of local state-owned assets and the requirements for the public reform of state-owned capital finance.HI. Reform of the Budgeting Management of Investment and Financing by Local Governments. The paper first presents an overview of the current investment and financing behaviors of local governments and provides a summary of major existing problems. Then, it analyses the necessity of China's local governments establishing a budgeting management system for investment and financing by local governments; afterwards, it sums up the fundamental practices and lessons of foreign capital budgeting. On this basis, the paper envisions establishing a budgeting management system for investment and financing by local governments in China.IV. Reform of the Budgeting Management of Local Social Security Funds. First, this paper reviews related debates on the reform of the budgeting of China's social security funds, and then presents its own viewpoints on the basis of an in-depth analysis. Then, it analyzes major problems in the management of China's local social security funds, and performs a comparative study of the budgeting of local social security funds in foreign countries. Last, it presents the preliminary proposals for reforming the budgeting of China's local social security funds.Last, on the basis of comprehensive evaluation, this paper elaborates on the prospects of the reform.