A Study On The Supervision System Of State - Owned Capital Management

After years of exploration and reform, the state-owned economy and state-owned assets have undergone profound development. With the total assets of state-owned enterprises increased from 18.02 trillion Yuan at 2002 to 85.37 trillion Yuan at 2011, the volume and value of state-owned capital was also growing. The competitiveness of state-owned assets should not be underestimated in the world and the earning has improved. Therefore, it is placed on the agenda to establish the perfect state-owned capital operation budget system for improving the management of state-owned assts.State-owned capital operation budget is a significant method for government to perform their duties as investors of state-owned assets, an important way to layout the state-owned economy and adjust industrial structure strategically, while the supervision system of state-owned capital operation budget is an important part of the state-owned capital operation budget system. To make sure the budget preparation and budget execution running efficiently and also provides protection to achieve the established goals of the state-owned capital operation budget, it is significant to establish a comprehensive state-owned capital operation budget supervision system.This paper is intended to study the central state-owned capital operation budget, based on the principal-agent theory and the political accountability theory. It is study the supervision strength and effects of these budget supervisors during the budget process by means of documentary, interview and questionnaire. It shows some questions. The first one is that the power between these supervisors is enormous unbalanced. The second one is that the supervisors pay much more attention on early stage than interim and final stage of budget process. The third one is that the methods of supervision are limited. Combining these questions and the principal-agent theory and the political accountability theory, this paper tries to build state-owned capita operation budget supervision system. Finally, it puts forward policy recommendations to perfect the state-owned capital operation budget system.