The Study Of Deviation Of China’s Government Budget And Final Accounts Implementation

Since1998, China’s government has had a series of budget reforms. The goal is to establish a control-oriented budget system. over the years, the rate of the budget implementation deviation is too large makes budgetary control unworthy of the name, it not only reduces the value of financial capital in the public interest but also it undermines the government’s image in the public mind.China’s budget system is established relatively lately and develops slowly.We need to find timely the problems in the budget process, and innovate it. And build a budget management model which suits for China through continuous reforms. This paper analyses of the reasons why has a high rate of deviation from our budget implementation and attempts to make some policy recommendations, I hope to improve our budget system and promote budget reform.The introduction describes mainly the purpose of this study, significance and the situation of study at home and abroad. In recent years, some scholars have begun to analyze the formation mechanism of China’s financial overcharges, and point out that the revenue is an important factor leading to financial cost overruns. But the literatures which study the deviation of our budget implementation from the perspective of cost overruns are relatively small. This paper studies the deviation of our budget and final accounts implementation from the income and expenditure, and makes the administrative expenses as a special case with some innovative.The second part of this paper reviews the definition of the relevant concepts and theories. With the development of socio-economic and the advance of Democracy.The budget is not just the government’s annual revenue report, it has become the means of which state regulates the economy and allocates the financial capital. Principal-agent theory, transaction cost theory, bureaucratic operator maximization theory have been used to explain the acts of the government budget, constitute the theoretical basis of this article. The third part analyses the implementation of budget from the three aspects of the revenue, fiscal spending, and administrative expenses Through analysing1994-2010’data of China’s fiscal revenue and expenditure budget,I found substantial extra in cost overruns in the financial system, the increasing scale of budget revenue and expenditure implementation and the rate of deviation also shows a rise trend. The rate of deviation of fiscal revenue and expenditure of the budget and final accounts renders unstable with the annual,Margin of change is too large.So it has a more complex facter lead to China’s financial overcharges and cost overruns.The fourth part analyses the cause of budget implementation bias from our budget status of implementation In general, if the financial overcharges, in accordance with the principles of a balanced budget, the budget has not been arranged corresponding expenditures, it will adjust the budget or extra-budgetary arrangements, resulting in over-expenditure. Financial cost overruns not only comes from the surplus revenue, but also closely links with China’s political system and budget monitoring mechanism. In the process of budget implementation, the Government has continued to develop new policies, the leaders are in charge of "note", increasing the randomness of the process of budget implementation, adjusting budget frequently. Some administrative officials have thin sense of law, Using the budget law’ unclear definition of the budget adjustments, they think it is not scope of budget adjustments as long as adjusting of the budget does not affect the budget balance, avoiding the supervision of the Congress. Coupled with the low transparency of the budget process, the taxpayer, as provider of financial funds, are not well supervise the budget process, constitute an important factor in cost overruns in the budget implementation process.Finally, I try to put forward some policy recommendations to suppress the surplus and cost overruns according to the reasons for the cause of the deviation of our budget and final accounts implementation.