Research Of ZD District Department Budget Management

Since the founding of New China, China’s budget system has changed for severaltimes. Since the implementing of reform and open policy, many major reforms have takenplace in China’s financial management system. Since1998, China began to treatestablishing a public finance system as a reform objective. Subsequently a series of newmeasures to deepen reform were launched, which greatly enhanced the fiscal budgetmonitoring capabilities,and financial management has leapt to a new level. Before thereform in budgeting, both central and local budget funds were based on the nature of fundsand classified according to authorization. The Financial Department, equipped withdifferent functions, was responsible for the allocation and management of each kind offunds, such as administrative expenses, infrastructure funding, research funding, etc.. Thismanagement approach has led to the weakening of the financial allocation functions. Suchmanagement methods can not effectively allocate financial resources. Eventually it acusedthat the financial sector couldn’t monitor the usage of budget funds effectively.Disadvantages of this kind of budget establishment method appears day by day.It can notmeet the actual needs any more. Reform is imperative.In this paper, the ZD district is the research object.It will use the finance andeconomics theory, combine with the local government budget management mode ofwestern developed countries like the United States, Germany, France and other countriesand summarize their advanced experience in the foundation. It also briefly introduce themain course of ZD District Department budget reform, analize the problems incurrent budget management of ZD district departments in the areas of budget, executionand supervision reasons and analize the causes of above problems.Finally,connecting with the actual ZD area, this paper provides suggestions for impro-vement and offers advices from three aspects of the departmental budget management. Theadvices for improving departmental budgeting recommendations include: to coordinatewith the district recommendation office and improve the accuracy of the preparation ofpersonnel costs; to introduce a standard budget cycle management, and explore long-termbudgeting; to implement zero-based budgeting model and improve the fixed standardsystem. The advices for improving implementation of departmental budget proposalsinclude: to strengthen the management of extra budgetary resources and achieve financialconsolidated budget; to detail project expenditure budget and balance a rolling management. The advices for improving regulatory aspects of the department budget recommendationsinclude: to establish project performance appraisal system and implement performanceappraisal; to improve budget monitoring system, and enhance the transparency of thedepartment budget. Meanwhile, the advices for the improvement of departmental budgetmanagement measures are as follow: to reform the financial internal organs and establish anew operation mechanism; to dilute ““A” Budget” procedures, and optimize budgetspipeline process.