The Study Of Deviation Of China’s Department Budget Compilation And Enforcement

The third plenary session of 18 th CPC Central Committee claims:” Improve the budget management system. Carry out a comprehensive, standardized, open and transparent budget system. The focus of the audit budget expands from equilibrium state, the size of the deficit to spending budget and policy. Establish a multi-year budget balancing mechanism and a comprehensive accrual government financial reporting system. ” Department budget, that is to say each department contains one budget, is compiled by grass-roots unite budget which is based on the functions of government departments. This budget which contains a comprehensive financial plan must be reported and summarized step by step. After checked by the finance department, it should be submitted to the People’s Congress.Reform of department budget is the core content of budget management system reform in China at present which aims to to regulate the behavior of the government’s budget, manage the public expenditure, optimize the allocation of resources, improve the efficiency of the government.After entering the new century, the National Audit Office began to announced the audit results of government departments budget, which push the preparation and implementation of departmental budgets to the public and make it become the focus of the social attention.Department budget execution which also can be called the department budget implementation emphasizes on the process of implementing the department’s budget. If the budget can not get the approval of the legislature and be changed arbitrarily, the the department budget execution can be wrong.Once approved by the the legislative authority, the department budget can go to perform link. Generally speaking, if elaborate budget can get effective implementation, the execution results will be consistent with the budget. But if not because of some objective circumstances or emergencies, department of final accounts can’t be exactly the same as that of department budget. This paper introduces the deviation of accounts and department budget which can use to describe the degree of difference between revenues and expenditures of final accounts with the department’s budget.In this paper, the first two chapters mainly elaborates the mainly research significance, the purpose of the study, the relevant domestic and international literature and related theories. Because department budget is to arrange the department revenues and expenditures at the beginning of the year, you can not expect the uncertainties inthe implementation process, it is inevitable to adjust the budget. In that case department budget execution deviation is often taken for granted which can get less attention from the academic circles. Based on the statistics of six randomly selected government agencies budget accounts, the paper can make a conclusion that the deviation of the department budget and final account is high. Government departments in our country in recent years appears a large number of excess and overruns phenomenon, which to some extent, reflects our country’s soft budget constraints.By comparing the Ministry of Agriculture’s budget revenue and expenditure accounts from 2007 to 2013,calculating the budget deviation degree, the third chapter focuses on the department budget planning and implementation of the ministry of agriculture deeply and makes empirical analysis of the relationship between surplus and cost overruns in the department budget implementation. The deviation of the government budget implementation, for one side, reflects its budget management and capital efficiency directly. For another side, it has a side effect on governance capacity of the sector as well as its image in the public mind, which we should attach great importance to.According to the department budget implementation, the fourth chapter analyzes the reason why the department budget implementation deviation is large. Firstly, the budget laws and regulations are not perfect in our country. Not all the revenues and expenditures of the different department are included in the the scope of the National People’s Congress for examination and approval in accordance with the current budget law and a large number of financial fund is used inefficiently, which wastes department and national financial resources.Secondly because of objective factors and force majeure, it is almost impossible for the department budget and final accounts to be the same. While the subjective and arbitrary execution of departmental budgets is the main reason that leads the department budget and final accounts a large deviation. Additional the interaction of the budget surplus and overruns can not be ignored. Finally, the supervision of NPC, lack of transparency and the discipline degree of the department budget are also contributed to the large deviations of the departmental budget execution.Finally, I try to put forward some policy recommendations from the aspects of budget establishment, execution, supervision about the reason why the department budget deviation is bigger in China. In the budgeting process, first of all, we need to improve laws and regulations. Only under the protection of the laws can the budget beimplemented successfully. Secondly, we should improve budgeting techniques,promote the forward-looking and rationality of the budget and narrow the budgeting and execution time. In the budget implementation process, we must strengthen the management of surplus funds and regulate the budget adjustment program strictly. In the budget supervision process, we should consolidate the authority of the National People’s Congress so that the effectiveness of supervision can be realized fully.Meanwhile it is necessary to increase the transparency of budget, avoid the arbitrariness of the department budget implementation and narrow departmental budget execution deviations.