Government Medium-term Rolling Budget Research

Government budget management has three main objectives:fiscal discipline. resource allocation priorities and implementation performance. The objective of implementation performance is mainly improved by delegating the authority to budgetary management and implementing performance budget. The first two objectives which belongs to the macroscopic level or medium level of budget management need to reform the budget technology so that the budget can be policy-oriented consciously. The method is mainly to establish the incentive compatibility between the budget and the policy objectives. With the deepening of financial reforms, budget reform surely will continue to promote in-depth. As the important aspect of our country's government budget reform, the medium-term rolling budget system has been conducting as a preliminary pilot project in several provinces, cities and counties. This paper aims to provide some referable experience and basis for our country's medium-term rolling budget system reform by means of comparing the implementing situation of medium-term rolling budget system in various countries.Based on analyzing the ways that local governments (Hebei province) introduced medium rolling budget, this paper summarizes the successful experience and existing problems during the medium rolling budget reform in China, and meanwhile proposes in theory the mechanism design concept governments should be pursuant to while introducing this budget mechanism as well as the path of our medium rolling budget reform in practical operation.The article consists of four sections and six chapters. The first section firstly elaborates the basic concept, content and structures of the medium-term rolling budget system, and then compares the relation between annual budget and the medium-term rolling budget. The second section makes a series of comparisons of various countries'medium-term rolling budget system in the terms of budgetary cycle, implementing background, objectives and budgetary supervision, and then on this basis, analyzes the necessity of implementing medium-term rolling budget in our country respectively from the standpoint of public financial, contract economics, politics and financial democracy. The third section analyzes the feasibility of implementing medium-term rolling budget system in our country and introduces our country's medium-term rolling budget reform pilot situation taking HeBei province as an example. The forth section provides the mechanism design concept of implementing medium-term rolling budget system in our country and puts forward several referable route choice according to the actual pilot situation of our country's medium-term rolling budget system.