Budget Management And Its Application In The Tarim Oil Field Study

Though the overall budget management has been the one of core program of enterprise management and applied in management of all social and economic organization in developed countries, it only practices in recent years in China and causes more and more emphasizes by Chinese enterprises and government with the fast development of the economy. " The interim program of national capital and financial management of enterprises" published in 2001 and "The guideline of the implementing financial budget management in enterprises" published in 2002 by Financial Ministry of Chinese government set up the principles for the enterprises to implement financial budget management.The paper introduces the model of overall budget management and proposes factors to implement it successfully based on concept and principles of overall budget management. The practice of overall budget management in Tarim oilfield company are examined by the method of data, case and example analyses. It suggests the model, organization, program or procedure of budget management, performance examination, overall budget management and its warning system for Tarim Oilfield Company based on the budget management model which combines the target cost with target profit according to the results of examination. It is proved that the economic efficiency in Tarim Oilfield Company is significantly improved since the overall budget management has been in valid for three years.