Study On The Financial Participatory Budget Reform Of Huainan City

The Third Plenary Session of the 18th Central Committee of the Communist Party of China point that finance is the foundation and important pillar of national governance, scientific finance-taxation system is a security to optimize allocation of resources, maintain market unity, promote social equity, guarantee China’s long-term stability. We must improve legislation, Clear powers, reform tax system, stable tax, transparent budget, improve efficiency, set up a modern financial system, exert the initiatives of both central and local. In article 14 of new budget law which is act from January 1th,2015,it first makes comprehensive regulations of public budget and proposes definite requires of budget subject,public scope, time and so on. Which budget law regulator makes budget public to limit government is useful to ensure the people’s right to information, participation and supervision, enhance government financial management, preventing corruption.New budget law emphasizing science, integrity and transparency of the budget requires the establishment of a comprehensive standardized, open and transparent budgeting system. Participatory budgeting is an innovative budgeting concepts and models. Participatory budgeting make the public directly participate all aspects of financial budgeting, define resource allocation and capital expenditures, inspect project implementation. Participatory budget which started from Brazil acquire a little of achievement in some countries’ finances reform. It increases the people’s ability of participatory in political activities, broadens channels of people’s suggestion of expenditure, improve efficiency of financial resources and transparency of financial expenditure, optimize the structure of fiscal expenditure, break through closed loop phenomenon of the previous budget establishment. Participatory budget which meets the requirements of the new budget law will further develop according to the reform of budget system.On the basis of drawing on international and domestic experience of participatory budgeting, in order to further improve the management level of budget expenditure and create sunshine finance,Huainan city start to carry out participatory budgeting reforms from 2012 according to<Budget Law of the People’s Republic of China> and requirements for the development expenditure reforms. Participatory budgeting implemented three years, accumulating some experience and innovating network review. But there have been budget non-compliance and other questions. Huainan City strengthen all-caliber budget management, advance democracy broad participation actively, deepen participatory budget reform, in strict accordance with the 18th CPC National Congress requirements. Structure section of this article as follows:The first chapter introduces the research background, purpose and significance, domestic and foreign research status and trends, research methods. Combined with the new "Budget Law" and financial expenditure performance management reform, the article proposes participatory budgeting reforms of Huainan city.The second chapter introduces theory of participatory budgeting. Introduce the connotation of participatory budgeting. Analyze four relevant elements of participatory budgeting which includes subject, objectives’and principles, the distribution of rights, the system design. The article describes two of participatory budgeting practice patterns.The third chapter describes the status quo of implementation of finance budget in Huainan city and analyses budget problems. Combined with the financial status quo and financial revenueand expenditure of the past 10 years in Huainan city and analyzing the budget problem existed, the article proposes the implementation of participatory budgeting reforms and creates the need for "sunshine finance".The fourth chapter describes empirical Investigation on the financial participatory budget of Huainan city. By nearly three years follow-uping participatory budget of Huainan city, the chapter describes development of participate budget, budget design principles, democratic decision-making mechanism of budget reform and analyze specific implementation process of participatory budget.The fifth chapter analyzes the effectiveness and inadequate of the financial participatory budget of Huainan city. From the view of the government and the masses, the chapter analyzes the effect of the finance participatory budget reform and sum up the achievements and shortcomings of reform.The sixth chapter proposes countermeasures to improve the financial participatory budget of Huainan city. It proposes suggestions to perfect the participatory budget reform. The chapter strives to find a suitable path for Chinese participatory budget reform, so as to promote budget reform and government construction.