Research On The Internal Supervision Mechanism Of China's Central Department Budget

Finance is not only a country's material foundation,but also the material guarantee enabling a country to perform its functions.Financial supervision is an important means of controlling government funds within the rule of law.The Ministry of Finance is responsible for central revenue and expenditure management,including building a strong internal supervision team and successfully preparing and implementing the central department's budget.The extent to which it is able to do so directly affects the efficient use of central funds,the degree of honesty of the central authorities,and the formulation and implementation of the state's macro policies.Therefore,the internal supervision of the central department's budget,which plays an important role in the overall national financial supervision system,is an indispensable component.Since the reform and opening up of the economy,China's central budget supervision has ensured the implementation of the distribution plan of fiscal revenue and expenditure.In addition,it implements ational macro-control policies,improves the efficiency of the use of funds,maintains susteined and steady economic growth,improves financial laws,strengthens financial discipline,reduces corruption,and so on.Thus,the reform of an economic system moves through all the stages of economic and social development.As an organic part of the overall economic system,the financial system is bound to constant reform and innovation,as well as changing the corresponding fiscal functions.This includes changing the internal supervision of the central department's budget;enhancing the role of management;and integrating the central budget,internal supervision,and financial management.The government's 18th report lists as goals improving the legislation of the financial system,clarifying responsibility,reforming the tax system,stabilizing the tax burden,making the budget more transparent,and improving efficiency.Specializing in supervising internal finance,the Ministry of Finance Supervision Bureau and the offices of the Ministry of Finance should focus on practical reforms of the fiscal and taxation system in the new round of financial and tax system reforms.Establishing an open,transparent,and strict standard modern budget system is the main starting point of modern state governance,and a major reform measure to strengthen budget constraints,standardize government actions,and implement effective supervision.However,China's social,economic,and financial management systems are still in transition.The result is that the financial budget system still has problems,and there is,as yet,no comprehensive specification of an open and transparent modern budget system.The original supervision system is fragmented,and does not reflect the current needs for internal supervision of the central department's budget,especially after-the-event supervision.These issues conflict with the audit function,hamper improvements to the internal supervision of the central department's budget and incur unnecessary costs while doing so.In addition,the corresponding legal punishment system needs to be improved to stem further loss.An internal supervision mechanism can effectively avoid the risk of leakages inherent in external supervision systems,and can promote standardization and efficiency.Based on this,combined with the actual work of the central department's budget internal supervision,we study the internal supervision system,identify the problems of the current system,and focus on its reform and improvement.We aim to promote the reform of the budget-related systems of the central department and enhance the transparency and legitimacy of the budget of the central government,in order to facilitate a key breakthrough in the reform of the new round of fiscal and taxation systems and to promote the overall role.The full text is divided into eight chapters.The basic contents of each chapter are as follows:The first chapter introduces the background and significance of the research on the internal supervision mechanism of the central department's budget.It defines the key concepts,catalogues and comments on relevant research,clarifies the basic ideas and main contents,explains the research methods,and highlights the innovative points of the research.The second chapter explores the institutional background of the internal supervision of the central department's budget.It also explores the construction of an internal supervision mechanism and analyzes the existing problems in the current system.Chapter three covers the rent-seeking problem in the budget execution of the central department.Based on the analysis of rent-seeking theory,it inspects the effect of the central government department budget supervision from 1983 to 2016,examines whether there is potential rent-seeking behavior in the execution of the central department's budget,and explores the reasons from the perspective of economic development through the vector autoregressive model.The fourth chapter examines the internal control of the budget process of the central department.In order to analyze the relevant theories of internal control,we select taxation departments,public hospitals,and universities through deviations of the final balance of fiscal revenue and expenditure to empirically examine the internal control issues of the central department's budget process.Firstly,based on the budget and final accounts data of the typical departmental financial revenue and expenditure from 2010 to 2017,we describe the current state of budget preparation and final accounts of fiscal revenues and expenditures.Secondly,we forecast the budget and final accounts of fiscal revenue and expenditure from 2018 to 2019 by using the grey forecasting model.Finally,usirng the actual and forecast value of the fiscal revenue and expenditure budget to calculate they deviation rate of the pre-final and final accounts,we analyze the current deviation degree and future deviation trend of the budget and final accounts in order to identify the problem of insufficient internal control in the central department's budget process.Chapter five looks at the agency problem in the internal budget supervision of the central departments.Based on the analysis of agency theory,we first use the game model to interpret the agency problem between the budget supervision unit and the supervised unit.Then,based on the financial and budgetary payment data of the 458 central budget units in 2013-2015 years' internal investigation,we use the revised Jones balance management model to discuss how to alleviate the agency problem in the central department's budget supervision from the public perspective of the pre-final accounts.Thereby we provide a reference for improving the internal supervision mechanism of the central department's budget.The sixth chapter makes an international comparison of the financial supervision mechanism.It systematically catalogues and compares the financial supervision mechanism of developed countries such as the United States,Canada,and Germany,as well as Argentina,a South American developing country at a similar economic development stage to our country.We draw on the advanced experience of these countries' financial management to find new ideas and effective methods for improving the internal supervision system of the central department's budget in China,The seventh chapter covers the strategies and countermeasures for improving the internal supervision mechanism of the central department's budget.Based on the analysis of Chapter ?'s institutional background;the problems existing in the internal supervision of the central department's budget in Chapters ?,?,and V;and lessons from other countries'experience in financial supervision in Chapter VI;we put forward ideas and methods to improve the internal supervision mechanism of the central department's budget from the overall strategy and the main countermeasures.Chapter eight summarizes the main conclusions of the paper,and puts forward the direction of further research based on the deficiency of current research.The main conclusions of the paper are as follows:Firstly,many problems exist in China's central department.These include budgetary supervision with relatively low levels of laws and regulations,insufficiently enforced budget supervision,and insufficient administrative penalties,etc.Secondly,because of the existence of potential rent-seeking,central budget expenditure is used to stimulate short-term economic growth,which is unfavorable for the long-term development of the economy,the main reason being that internal supervision is lacking.Thirdly,the issue of financial revenue and expenditure deviation is prominent,highlighting current inadequate internal controls.Fourthly,there is an agency problem between the budget supervision unit and the supervised unit.The greater the use of the central budget and the better the internal supervision of the budget unit,the more effective the implementation of the budget will be,with open-ended accounts playing an important role.Fifthly,the standard mechanism,effective legal guarantee,complete procedure and performance management of other countries'financial supervision have great significance for improving the internal supervision of the central budget of our country.Based on the conclusion of the paper,this chapter puts forward an overall strategy that includes defining the path of the central department's budget supervision system,establishing a coordination mechanism between the supervision entities,improving the system of laws and regulations for budget supervision,improving the system for the construction of the budget supervision service system,and supervising the quality control mechanism.It also includes the main countermeasures covering internal supervision of revenue,expenditure,and the process of management to improve the internal supervision mechanism of the central department's budget.The innovation and contribution of this paper are mainly reflected in the following three aspects:Firstly,the theoretical aspect considers the rent-seeking theory and puts forward that the budget supervision of the central department needs to establish a long-term assessment mechanism to control the potential short-term view of the goal.On the basis of agency theory and game theory,the concept of information is put forward to solve the internal supervision mechanism of the central department's budget;Secondly,the methodological aspect explores the scale of the central department's budget and the level of internal supervision and introduces the relevant empirical model in the field of financial management,to provide new empirical models and methods for the study of internal budget supervision.Thirdly,from the perspective of research,the central budget department s the main research body,from a global perspective,that transcends a single sec(?)A comprehensive review and study of its internal oversight mechanisms compensates(?)r the limitations of the single-sector research perspective.