Centralized Treasury Payment Reform Of Financial Oversight

Reform of concentrated payment from state treasury is being implemented across China at the request of Pilot Reform Program of Financial & State Treasury Management System. Under the principle "Adapting to local conditions", Wenzhou City has started with the modification of managerial mode of financial fund to conduct collective accounting calculation of financial funds of all administrative authorities in the city as well as some fully-funded institutions and capital construction organs, so as to promote concentrated payment from state treasury evolutionally.Implementation of such reform has changed former status on payment, that is, accounts are separately opened by units and funds are separately allocated from state treasury. By means of unified receipt & payment accounts which are opened with commercial banks, financial departments may supervise the units' budgetary funds directly. Such reform has enhanced supervision and coped with a number of problems as follows: deposition of financial fund, weakened restriction of budget, failure in expenditure control, and waste and unwarranted diversion of fund. In addition, it has improved financing efficiency of financial fund. However, compared with the attainment of ultimate goal of concentrated payment from state treasury, financial supervision does work, but the effect is indistinct, for such phenomena still appear frequently as incomplete implementation of supervising functions and low efficiency of supervision.This paper proposes that proper tackling of problems regarding financial supervision during the said reform is decisive to the further reform of state treasury in Wenzhou City. Accordingly, it analyzes in details the current status on such reform in Wenzhou City and reasons for low efficiency of financial supervision. Meanwhile, measures for the enhancement of financial supervision are proposed herein. From external perspective, efficiency of financial supervision is affected not only by functions of Wenzhou Accounting Calculation Center for Financial Fund, but also by budget management system and governmental procurement system implemented in the city currently as well as the setup of information network for concentrated payment from state treasury. From internal perspective, supervising and restricting mechanism implemented in the center has exerted influence on the efficiency of financial supervision.As regards the measures for enhancing functions of financial supervision during the reform in question, the author elaborated as follows: financial supervision must be enhanced through deepening reform and improving financial supervision system adopted in the concentrated payment from state treasury, by virtue of modern bank systems for payment and liquidation as well as flexible combination of concentrated payment from state treasury, departmental budget and governmental procurement. Only in this way can we realize supervision of financial fund prior to, during and after events, thus attaining the goal of enhancing financial supervision and improving service efficiency of financial fund.