Study On The Overall Budget Management In China YangzeRiver Power Co.,Ltd

Management of overall budget originates from early 20~th century and it is one of the main internal managing and controlling methods. The enterprises implementing overall budget management take up 91%,93%,100%,and 100% respectively of all enterprises in America, Japan, England, and Holland. It has become a management convention. Management theory field in our country sings high praise for management of overall budget theory.The implement of overall budget management should be based on proper organization system. Budget organization includes two types of budget managing organization and budget implementing organization. Different budget responsibility centers have different content. Overall budget management should be based on effective evaluation and inspiration.China YangzeRiver Power Co.,ltd. ( CYPC for abbreviation later) has executed overall budget management, but has no enough understanding and has not build up perfect system and convention. CYPC should improve the relationship between plan and budget, professional budget and financial budget, and capital budget management. The course of overall budget management should be improved too. CYPC should build overall budget management system with the center of cost including three steps: initialize purpose cost, decompose purpose cost and realize purpose cost. Purpose cost evaluation should be realized by building effective responsibility system, post responsibility system, management information system and effective inspiration.CYPC has built overall budget management system with focus on classification management which is that certain resource or program is controlled by certain department. The controlling and evaluation are made by the Plan and Production Department and Financial Department.The overall budget management system of CYPC needs improvement, the decision of proper principle, method, procedure and convention should be made. The important procedures are improving professional budget and capital budget, forming and applying financial budget, and building internal controlling convention and evaluation system.