Fiscal Transparency And Government Governance

With the steady development of the global economy, social entities’requirements on government financial information in the social activity is becoming more and more urgent. In the context of economic globalization, most countries around the world began to establish a government accounting system compatible with international accounting principles. The establishment of generally accepted accounting principles has promoted the operation of the government’s financial information disclosure and revealing. Furthermore, the promotion also enhanced the Government’s fiscal transparency. In2003, China has started a new round of government accounting reform. For a long time, there are quite a lot of problems in the Chinese government fiscal supervision and using. Such as:usage of public resources and public sector performance appraisal as well. The government accounting system is the main carrier of government financial information, which helps to fulfill government’s fiduciary duty and meet the needs of the public and other types of information users.At the same time, government accounting is an intuitive reflection of financial transparency. Financial transparency sets stringent requirements for the contents, methods, scope of government accounting’s disclosure. Financial information must be delivered timely, comprehensively and systematically, allowing the public to understand government’s fiduciary duty.IMF published the "Manual on Fiscal Transparency". According to this manual, good governance is essential to macroeconomic stability and quality growth while financial transparency is a critical aspect of good governance.We are trying to research government accounting reform, analyzes the effects of fiscal transparency, focus on improving financial transparency in the perspective of government accounting reform for the purpose of strengthening government’s financial information disclosure system, improve financial transparency and enhance governance.Based on this, We first review the literature of financial transparency as well as government accounting and government governance, putting forward the innovation of this paper; Secondly, analyze the status quo of fiscal transparency and government accounting by studying twelve cases of government accounting reform; Thirdly, the theatrically analyze the mechanism of financial transparency on governance and simple regression with the help of global governance indicators; Finally, put forward basic conclusions.