Study Of The Administrative Undertaking Expenditure In Public Finanace Of Changchun City

As for the local finance, administrative undertaking expenditure should take the proper proportion in public financial expenditure, neither too high nor too low. Through the analysis on the proportion of the administrative undertaking expenditure in public financial expenditure of Changchun City, the article probes into the range of local administrative undertaking expenditure, and studies on how to solve the problems of "offside"and "omission"in the local financial fund rationally. Part 1: brief introduction of administrative undertaking expenditure According to the functions of the government, the administrative undertaking expenditure in our country can be divided into two major parts of expenditure for administration and government, and expenditure for social culture and education, the concrete contents of which include the financial expenditure used for the state power organs at all levels, administrative organs, foreign affairs organs to exercise their functions and used for public institutions for culture, education, science, sanitary, sports, communication, etc. and expenditure for social security and housing construction. Administrative undertaking expenditure is a basic part in the public financial expenditure, so it has the characteristics of public expenditure, namely, the characteristics of public and public benefits. Part 2: the theory and demonstration review of administrative undertaking expenditure (1) The statistic analysis of its proportion in public expenditure Shown by the statistics, generally, the proportions of administrative undertaking expenditure in public expenditure in developed countries are among 5%-10%, while in our country it is generally about 15%. The proportions of educational expenditure in public expenditure in developed countries are generally among 5%-10%, while the proportions in developing countries are generally above 15%. The proportions of the health care expenditure in public expenditure in developed countries are generally above 10%-15%, while they are above 5% in developing countries. Judging from the financial expenditure categories from 1993 to 2002 in our country, the average proportion of administrative undertaking expenditure taking in the public expenditure was 43.5%, among which the expenditure on social culture and education took a proportion of 27% in public expenditure, while the expenditure on administration and government accounted for 16.5% of the public expenditure. (2) Several factors affecting administrative undertaking expenditure In general cases, the scale of administrative undertaking expenditure depends on the range of the public financial activities of the government. It is affected mainly by three factors: (1) Economic factor; (2) Political factor; (3) Social factor. (3) Theoretical summary of the condition of administrative undertaking expenditure Because the contents of administrative undertaking expenditure, which includes two major categories of expenditure on administration and government and expenditure on social culture and education, is extremely complicated, it is impossible to limit the range and amount of administrative undertaking expenditure with the accurate quantity or the clear proportion in the practical work, instead, we should consider every financial period synthetically to confirm the proportion of administrative undertaking expenditure because of the influences of economy, political and social factors. Part 3: the condition of administrative undertaking expenditure of Changchun City and the analysis of existed problems The condition of administrative undertaking expenditure of Changchun City in recent years From the year of 2000 to 2004, the proportions of administrative undertaking expenditure in public expenditure of Changchun City were all above 62%, among which, the proportions of expenditure on administration and government were above 18%, while the expenditure on social culture and education accounted for more than 44%. (2) Specific factors affecting administrative undertaking expenditure ofChangchun City The scale of administrative undertaking expenditure is influenced by a great deal of factors. As for Changchun City, it is mainly affected by the following five factors of the state of the fiscal revenues, the scale of the government and the set of its functions, the budget and the results, the consumption level of the posts of civil servants in administrative institutions, and the demands of the development of urban economy and urban construction. (3) The problems existed in administrative undertaking expenditure of Changchun City From the above analysis, the management of administrative undertaking expenditure in Changchun still has the following problems: First, the fiscal revenues of Changchun are limited and the expenditure is too small in total amount, which cause the higher proportion of administrative undertaking expenditure; Second, the population supported by the finance is relatively larger, and the government runs in high cost, which cause the proportion of administrative undertaking expenditure remains high; Third, it is needed to improve the system of budget and the results, and it is hard to control the additional administrative fees in executing the budget; Fourth, the constant improvement of the consumption level of the civil servants in administrative institutions, have consumed a large amount of available financial resources; Fifth, the investments on economic development and urban construction are insufficient, and the methods of fund distribution cause a higher proportion of administrative undertaking expenditure. Part 4: suggestions on adjustment of administrative undertaking expenditure of Changchun City (1) The orientation of adjusting administrative undertaking expenditure of Changchun City Judging from the actual conditions of Changchun City, the adjustment of its administrative undertaking expenditure needs to start with solving the basic problems: first, cultivate the financial resources, expand the scale of the financial revenue and reduce the proportion of administrative undertaking expenditure; Second, promote the reform in administrative institutionsactively, reduce the population supported by the finance, and lighten the burden of financial expenditures; Third, increase the rigidity of the budget for administrative undertaking expenditure, reduce the additional expenses in executing the budget; Fourth, regulate the consumption standard of the posts of civil servants in administrative institutions to lighten the burden of financial expenditures; Fifth, optimize the structure of financial expenditure, and adjust the proportion of the administrative undertaking expenditure. (2) Optimizing the structure of financial expenditure and building the warning mechanism of financial expenditure in Changchun City According to the financial expenditure of Changchun City in recent years, considering the condition of urban development, through the comparison of expenditure conditions in developed countries and developing countries, and combining the proportions of each categories in the financial expenditure of our government, the article suggests that in the future five to ten years, the structure of financial expenditure in Changchun City should be adjusted to the following proportions: First, it is suggested that the proportion of expenditure on administration and government in the total financial expenditure should be controlled within 15%; Second, it is suggested to keep the scope of expenditure on education and control it around 13%; Third, it is suggested to control the expenditure for the retired people of the administrative departments and institutions within 7.4% of the total financial expenditures; Fourth, it is suggested to raise the expenditure on social security, medical care and sanitary, social welfare to around 20%; and add the expenditure on economic construction to 20%; enlarge the scope of expenditure on urban construction to reach 6% of the financial expenditure; build the mechanism of government paying debts, and confirm its expenditure accounting for 7%; control other expenditures within 11.6% of the financial expenditure. And it also proposes to set up the early warning mechanism on financial expenditure of Changchun City, when the expenditures on economic construction, urban construction, education and social security and health care are lower than the proportions mentioned above, and when the expenditures on administration and government, retired people and othercategories go beyond the proportions mentioned above, the alarm will be sent out. The financial department will make adjustments. Administrative undertaking expenditure is a very important part in the financial expenditure. The adjustment of the structure of public expenditure, and the control of the scale of administrative undertaking expenditure, not only need the financial department to finish, but also need positive cooperation and support of every department of the government.