Treasury Management System Reform In China To Explore

We are in the transition phase from planned economy to socialist market economy. The traditional treasury management system is built and implemented upon the planned economy, it has many drawbacks including multiple steps for budget collecting, low efficiency, lack of effective monitoring and control system, low transparency, slow feedback of financial situation and so on, due to the fact that the allocation of budget was carried through by financial department and budget organizations with various accounts of their own, and the process needs to go through step by step which usually takes extra time and obviously it is not the cost effective way. It is very challenge for such a system to meet the requirements for current dynamic budgeting, execution as well as macro-economic control and adjustment. With the development of market economy, the disadvantages of current treasury management system are getting on the surface gradually; it is just the right time to get the system reformed.Treasury management system is a vital part of the entire financial management system, it has directly impact on the implement of financial and currency policy. In order to build up a public financial work-frame associated with socialist market economy, based on creating a treasury single account system as its primary focus, the goal of the reform of the treasury is making the collecting and allocating of revenue become of state centralized collecting and paying by state treasure as its main form. The execution of this reform will be helpful to boost the efficiency of financial funds, to increase the transparency of financial system and to prevent corruption from its root.In this dissertation, the author used the relevant and necessary theories and methodologies of treasury management system as starting point, deal with the Public financial theory,Public choice theory,Principal-agent Theory and Institution innovation theory ,meanwhile, the author also introduced the successful examples of treasury management system of counties aboard with market economy. Furthermore, taking Ningbo city as an example, the author studied the details of the reform of treasury management system, analyzed the outcome of the reform of the treasury centralized revenue and payment system by local treasury of Ningbo city and identified the current issues in reform process, finally the solution to improvement of centralized revenue and payment system was proposed.The dissertation contains 7 parts:Part 1 is the foreword. It mainly introduce the study background of this dissertation,the goal and method of it as well as the current research in this sort of field both home and abroad.Part 2, Summarize the relevant theories about the reform of state treasury.Part 3, Analyze the drawbacks of the traditional treasury management system of our country and the reason of it in detail.Part 4,In order to overcome these drawbacks,Ningbo set up the reform of the centralized accounting system.The process have achieve some progress,but cannot get rid of these disadvantages totally.Part 5, Comparison the difference of treasury management systems between two groups including counties from organization of economic co-operation and development i.e. US, UK and Japan, and counties of economic transition i.e. Brazil , the valuable experience has been provided and discussed. Part 6, In depth discussion of reform of treasury centralized revenue and payment system of Ningbo city, the existing issues as well as the potential solutions are identified and suggested. Part 7, Conclusion.